and Frequently Asked Questions
For more than a decade, the Syrian banking sector lived in a state of suffocating isolation from the global financial system due to international sanctions, economic collapse, and declining domestic confidence. With the fall of the previous regime in December 2024, the banking landscape appeared to be standing on the ruins of a sector that had lost its core functions and turned into little more than limited local channels. Yet this collapse was not the end of the story—it marked the beginning of a new phase characterized by intensive efforts to rebuild the sector and reconnect it with the world through a gradual but clearly defined path.
From Complete Isolation to the Beginning of Reopening
Since 2011, international sanctions were the most influential factor in paralyzing the Syrian banking sector. Disconnecting Syrian banks from the SWIFT network was not merely a technical measure—it severed a vital artery linking any economy to the world. Without the ability to conduct foreign transfers, finance trade, or open letters of credit, banks’ roles shrank to domestic operations, transfer costs soared, informal channels spread, and trust in the sector deteriorated.
Following the collapse of the previous regime on December 8, 2024, banks entered a phase of “banking vacuum”: closed branches, near-zero liquidity, frozen deposits, and a parallel market for selling bank balances. Despite some economic improvements, banks remained outside the global financial system, with only limited correspondence access.
This reality began to shift gradually with the arrival of the new government, which placed the reintegration of Syria into the global financial system at the top of its priorities.
Lifting Sanctions: The Major Turning Point
By mid‑2025, signs of reopening became increasingly visible. After extensive diplomatic efforts involving national figures inside and outside the country, Europe announced the lifting of its sanctions, while the United States eased restrictions on the financial, energy, and trade sectors.
The pivotal moment came on August 25, 2025, when the U.S. Treasury ended its sanctions program on Syria, allowing the name of the Central Bank of Syria to reappear within the SWIFT system. This was not merely symbolic—banks in Turkey, Italy, Saudi Arabia, Germany, Switzerland, and the Netherlands began showing “Central Bank of Syria” as an available correspondent option, signaling that Syrian financial channels were reopening.
Canada and Japan soon followed, lifting banking and trade restrictions as part of what they described as “Syria’s reintegration into the global economy.”
Domestic Reforms to Strengthen International Confidence
Reconnecting with the global financial system requires more than political decisions—it demands a banking environment capable of meeting international compliance standards. For this reason, the new government implemented several key measures:
- Addressing exposure to Lebanese banks The Central Bank of Syria required local banks to cover losses linked to the Lebanese financial collapse, amounting to USD 1.6 billion. This step was essential to demonstrate financial transparency and restructure bank balance sheets in line with foreign banking requirements.
- Reforming the monetary structure Issuing new currency denominations helped regulate liquidity, reduce exchange‑rate manipulation, expose money‑laundering activities, and restore confidence in the national currency.
- Strengthening governance and compliance The Central Bank signed an MoU with the UNDP to enhance governance, supervision, and transparency—core elements for any banking system seeking global integration. It also contracted Oliver Wyman to conduct a comprehensive diagnostic review of the sector to align it with international standards.
- Practical steps toward financial reintegration By late 2025 and early 2026, concrete steps indicated that Syria was no longer merely “under observation” but was actively progressing toward rejoining the global financial system:
- Signing MoUs with Visa and Mastercard to restore electronic payment services.
- Launching a banking‑sector restructuring initiative led by the Union of Arab Banks with European support.
- Growing interest from Arab and Turkish banks in entering the Syrian market, with expectations of reaching 35 operating banks by 2030.
- The return of global logistics companies to Syria, boosting foreign trade and increasing the need for formal banking channels.
Conclusion: A Long Road… But One That Has Already Begun
The Syrian banking sector has not yet fully returned to the global financial system. Major challenges remain, and the banking infrastructure requires comprehensive rebuilding. However, the path forward is clear, and the efforts underway are substantive, involving:
- Lifting sanctions
- Technical reconnection
- Domestic reforms
- International cooperation
- Strategic partnerships
- Practical steps in financial infrastructure
Together, these elements form the foundation for restoring the natural role of Syrian banks and reintegrating Syria into the global economy.
Frequently Asked Questions
How can I transfer money into Syria?
Despite the reactivation of SWIFT, foreign banks still lack sufficient confidence to fully resume correspondent relationships with Syrian banks. For now, the most reliable options remain:
- Western Union through a licensed money‑transfer company inside Syria
- MoneyGram through local banks
These remain the safest and most widely used channels.
Can I use a credit card for payments in Syria?
Not yet. Although the Central Bank has signed MoUs with Mastercard and Visa, implementation has not begun due to ongoing restructuring of local banks and the need to update regulations. Local credit‑card companies do exist, but they are undergoing governance and compliance reforms in preparation for future integration with global networks.
Why does the banking sector still struggle despite eased international sanctions?
The liquidity crisis remains the biggest challenge. According to disclosures by the Central Bank of Syria, Syrian banks have more than USD 1.8 billion trapped in the collapsed Lebanese banking system.
