Abdulkader Husrieh, governor of the Central Bank of Syria, announced a series of reform steps in the banking sector, forecasting growth over the next five years despite challenges of liquidity shortages and difficulties with international reintegration.
In an interview with Sky News Arabia published on Tuesday, September 16, Husrieh stressed the state’s commitment to protecting citizens’ deposits, rejecting what he called “forced deductions,” and urged Syrians to support the economy instead of hoarding cash or turning to foreign currencies. He underlined the importance of “financial inclusion,” noting that the Central Bank is working to facilitate domestic cash flows and restore confidence in the banking system.
Husrieh described financial remittances to Syria as a “lifeline” for the country’s economy, adding that transfers from the United Arab Emirates alone range between $700–800 million annually.
He pointed out that the official exchange rate has nearly converged with the black-market rate. The US dollar currently trades at 11,580 Syrian pounds on the black market, while the Central Bank has maintained an official rate of 11,000 pounds since May.
Forecast of “significant” growth
Husrieh predicted that Syria’s banking sector will witness “significant growth” within five years, reaching 30–35 banks, both local and foreign. He asserted that by then, Syria will have an effective monetary policy capable of ensuring growth and price stability, with the return of large-scale investments and major projects.
However, he acknowledged the dual challenge facing the sector: “a lack of domestic liquidity and difficulties rejoining the global financial system.”
He cited assessments from senior International Monetary Fund officials and G20 finance ministers who suggested Syria could become the “next regional tiger,” similar to the experience of Vietnam.
“There is a shortage in banking infrastructure, especially after Syria was excluded from the global financial system for 15 years,” Husrieh said, emphasizing that rebuilding trust with international correspondent banks will be a long process requiring legislative reforms and stronger compliance with anti-money laundering and counter-terrorism standards.
Deposits and withdrawals
The Central Bank governor rejected any measure resembling “forced debt deductions” on depositors’ money, stressing that trust is the basis of trade and the economy. While such steps might yield temporary gains, he warned, they would “destroy the future and undermine confidence.”
He said the Syrian state is committed to repaying all its financial obligations and is working to restore old rights to citizens, whether linked to insurance or unfair rental laws. Yet the current restrictions on bank withdrawals—introduced following Lebanon’s banking crisis in October 2019—“are not normal,” Husrieh noted, and have since become entrenched in Syria’s economy.
He confirmed that the Central Bank is in ongoing dialogue with local banks to establish mechanisms that ensure unrestricted withdrawals, describing the status quo as unsustainable.
Hoarding foreign currency
Husrieh urged citizens to avoid behaviors that could worsen the crisis, such as excessive hoarding or turning to foreign currencies, warning that such “selfish individual behavior stops economic activity and leads to collective impoverishment.”
He added that the Syrian government chose the “harder but sounder path” of relying on real investment rather than chasing promises of temporary support through external deposits.
Financial inclusion programs, he explained, include:
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Introducing electronic payment services and digital solutions.
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Establishing a Credit Bureau to assess the creditworthiness of individuals and companies.
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Targeting four main groups: technology entrepreneurs, women, educated youth seeking financial support, and marginalized groups.
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Offering diversified banking products, including Islamic banking services.
Dropping two zeros and new banknotes
Husrieh said the decision to remove two zeros from the national currency and issue new banknotes is not merely a technical adjustment to the banknotes’ appearance and does not change the actual value or purchasing power of the pound. “It changes only the nominal value,” he explained.
The move aims to simplify financial transactions and ease daily dealings in an economy where figures have swelled dramatically due to years of currency depreciation.
Syria is preparing to launch new banknotes with two zeros removed, in a step aimed at boosting confidence in the Syrian pound and reviving the local economy.
Phases of currency replacement
Husrieh said the Central Bank has chosen the right timing for the monetary reform, linking it to “political progress.” The replacement process will follow Monetary Authority Law No. 23, which sets clear phases:
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A preparatory stage before launch.
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A coexistence period where old and new notes circulate together.
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A final replacement stage lasting up to five years.
He reassured citizens: “Anyone holding old pounds will exchange them for new ones, with full commitment down to the last qirsh (piastre).”
Lifting restrictions on money transfers
Husrieh had previously announced in August, via his Facebook page, the removal of all restrictions on transferring money between provinces, including the requirement for prior approval for individuals and businesses.
He explained that the decision aims to support economic activity and facilitate trade and banking transactions, while keeping oversight of suspicious or illegal activity.
The goal, he said, is to allow money to move freely inside Syria without prior approvals, urging citizens and businesses to commit to transparency and use safe, official channels.
In a previous interview with Enab Baladi, Abdul Rahman Mohammed, deputy dean of the Faculty of Economics at Hama University, said the significance of lifting these restrictions lies in:
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Boosting liquidity: easing cash movement across provinces to improve access to funds.
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Strengthening trust: reflecting the government’s commitment to improving the business climate, potentially increasing investor and citizen confidence.
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Facilitating transactions: speeding up financial procedures and enabling companies and individuals to carry out daily transactions more easily.
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