Interview: Mohammad Safwat Raslan, Governor, Central Bank of Syria, on sustainable progress, financial stability and rebuilding confidence
Which indicators best reflect the progress made in restoring macroeconomic stability since the recent change in government?
MOHAMMAD SAFWAT RASLAN: Progress should be assessed by the correction of existing monetary imbalances and by the foundations being put in place to make stability sustainable. With the tools and resources available to it, the Central Bank of Syria has maintained a disciplined monetary stance, working to reduce monetary financing of the fiscal deficit and improve liquidity management. The IMF has noted a strengthening recovery in 2026, supported by improving agriculture, energy and electricity supply, trade and services, the return of refugees, and increased visitor activity. It currently expects Syria to record double-digit growth in 2026, while also emphasising that growth remains uneven.
For us, the key indicators of progress are not limited to inflation and the exchange rate – exchange-rate stability alone does not constitute financial stability. The next phase requires monetary and financial stability to be built in parallel, supported by fiscal and monetary discipline, a stable banking sector, sound liquidity conditions, functioning financial markets and payment systems, and the gradual return of confidence in the Syrian financial system. The objective now is to move from containing imbalances to firmly anchoring macroeconomic stability and building the institutions and instruments required to sustain it.
What are the key priorities for rebuilding confidence in Syria’s financial system?
RASLAN: Rebuilding confidence requires consistency across economic policies and cannot be achieved through monetary policy alone. For citizens and domestic businesses, a central priority is to restore confidence in banks so that they can resume their normal role as institutions for saving, payments and productive financing. This requires better banking services, modern payment systems, stronger depositor protection and more effective liquidity management. We need to reduce exceptional restrictions on withdrawals through a carefully sequenced approach to protect the soundness of banks and avoid sudden liquidity pressures.
For international partners, the lifting of external restrictions is an important step, but confidence must be reinforced through strong compliance, governance and risk-management frameworks. Strengthening Syria’s Anti-Money Laundering/Countering the Financing of Terrorism framework; regulating the foreign-exchange market and payment-service providers; and improving transparency, disclosure and the quality of economic and financial data are equally important. Confidence is built between banks and their customers, and among financial institutions themselves, between domestic banks and correspondent banks, and with international partners. The clearer and more predictable the rules and procedures become, the more sustainable these relationships can be.
How can liquidity be channelled towards productive sectors while preserving financial stability?
RASLAN: The main role of the central bank is to provide a stable monetary policy within which credit can be allocated efficiently. Targeted credit policies and appropriate monetary instruments can encourage banks to direct financing towards productive sectors. This can include differentiated reserve requirements or carefully designed portfolio-based incentives, provided that they are consistent with monetary stability.
Prudential supervision is essential. Credit expansion must be accompanied by appropriate capital, liquidity and risk-management standards so that broader economic financing does not create unnecessary vulnerabilities. The ultimate objective of banking-sector reform is not only to ensure the stability of financial institutions, but also to restore their core function as financial intermediaries, channelling savings into productive financing that supports investment and growth.
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