Central Bank of Syria: The Economy is Recovering Faster than World Bank Expectations

SadaNews - In an ambitious message aimed at reintegrating Syria into the global economy after the 14-year war, the Governor of the Central Bank of Syria, Abdul Qader Al-Hosari, confirmed that his country's economy is growing at a rate that far exceeds the World Bank's estimate of 1% for 2025, thanks to the recent return of around 1.5 million refugees. This statement was made via video link to the "Reuters Next" conference in New York.

Al-Hosari stated that the government is seeking to rebuild trust in its currency and financial system by issuing a new currency in 8 denominations with the removal of two zeros from the Syrian pound, which recently registered about 11,057 pounds to the dollar on the "Workspace" platform affiliated with the London Stock Exchange Group. He explained, "The new currency will be a signal and a symbol of this financial emancipation."

Growth Outlook

In July, the World Bank estimated that the Syrian economy would grow by 1% in 2025 after a contraction of 1.5% in 2024 due to security challenges, liquidity issues, and the suspension of aid.

However, Al-Hosari believes that this indicator does not reflect reality: "Just calculate the minimum that the return of the refugees can add to the gross domestic product."

Despite the absence of reliable economic data post-war, he stated that inflation and exchange rate indicators reflect the beginning of an economic recovery.

Towards Lifting Sanctions

Al-Hosari described the recent cancellation of many American sanctions imposed on Syria as a "miracle," noting his expectation that sanctions will be completely lifted by the end of this year, which will reassure global correspondent banks about resuming dealings with the Syrian banking sector.

He pointed out that the central bank is working to update anti-money laundering and counter-terrorism financing regulations as an additional guarantee for international financial institutions. He disclosed that workshops are being organized with banks in the United States, Turkey, Jordan, and Australia to discuss due diligence procedures.

He also confirmed that implementing the decision to cease financing the budget deficit by the central bank after seven decades will enhance public financial discipline.

The central bank links the rise in the value of the pound and the decline in inflation to the beginning of economic stability after the long war (Al Jazeera).

New Digital and Financial Partnerships

The governor welcomed the signing of an agreement with "Visa" to launch digital payment systems, with plans for the return of "Mastercard" as well, adding, "We are working to establish an integrated payment system that includes global partners because our vision is for Syria to become a financial center for the Levant."

In the Jordanian capital, Amman, Al-Hosari, during the Jordan-Syrian banking summit, called for the establishment of joint financing partnerships with Jordan through:

Joint investment funds for productive sectors.

Credit lines for cross-border trade.

Fast channels for settlement and financial transfer.

Experience exchange in risk management and digital transformation.

He emphasized that Syria is entering a phase of rehabilitating facilities and expanding the production base, with promising opportunities in modern agriculture, food industries, energy, construction, and technology.