Interview: Abdulkader AlHussrieh, Ambassador and former Governor of the Central Bank of Syria, on developing a functioning interbank market and deepening intermediation
In which ways are economic relations between Syria and North America developing?
ABDULKADER ALHUSSRIEH: Syria’s economic relationship with the United States is evolving from one of limited engagement and financial isolation into a long-term partnership based on trade, investment, technology and shared prosperity. For Syria, the US represents more than a source of capital. It offers expertise in finance, technology, energy, infrastructure, healthcare, education and corporate governance. At the same time, Syria offers significant investment opportunities for American companies as the country rebuilds its infrastructure, modernises its economy and reconnects with regional and international markets. The first phase of Syria’s development should focus on restoring financial connectivity and building confidence. The second phase should be about investment and reconstruction. I would like to see the American institutions and companies participate not simply as contractors, but as long-term investors and strategic partners through project finance, infrastructure funds, public-private partnerships, and other investment vehicles.
How has financial sector stabilisation been approached since the change in government in 2025?
ALHUSSRIEH: Since March 2025, our priority has been to restore monetary and financial stability, rebuild confidence in the Syrian pound and lay the foundations for broader financial-sector rehabilitation. We implemented a coordinated stabilisation programme combining monetary policy, transparency in the foreign-exchange market, improved liquidity management, and closer coordination with fiscal authorities. These measures helped contain volatility, narrow the gap between official and parallel exchange rate, and restore confidence in monetary policy. Inflation began to decelerate, while the Syrian pound appreciated by approximately 30-35% following the liberation and was broadly regarded as stable by mid-2025. This stabilisation created the conditions for a technically challenging reform – the redenomination of the Syrian currency. The change was successfully completed in 180 days, replacing approximately 95% of the currency in circulation – around 42trn old Syrian pounds and approximately 14bn banknotes. Going forward, monetary policy must continue to evolve towards a modern, market-based framework. Key instruments to be developed will include open-market operations, targeted liquidity absorption and a clearly defined interest-rate corridor, supported by transparent communication to anchor inflation expectations and reinforce public and investor confidence. Financial-sector rehabilitation also requires stronger banking infrastructure and balance sheets. A priority is establishing a functioning interbank money market to improve liquidity management and monetary transmission. We have been in the process of assessing recapitalisation mechanisms to strengthen banks and rebuild capital buffers where necessary.
What regulatory steps are being taken to ensure Syria’s banking system can attract investment while reconnecting to global payment systems?
ALHUSSRIEH: The upgrading of the banking supervision framework with assistance from our technical partners and the introduction of regulations aligned with Basel III standards are key steps. In addition, we have strengthened anti-money-laundering and counterterrorism financing compliance to meet international norms. On the infrastructure side, we have been working to upgrade payment systems, retrain compliance teams and engage with international partners to revalidate correspondent banking links and restore full Society for Worldwide Interbank Financial Telecommunication connectivity. There is need for developing bilateral and regional payment arrangements with key trading partners, including Arab and Eurasian systems. There is as well need for local currency settlement platforms to sustain trade and financial continuity.
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