Abdul Qader Hasriyeh, governor of the Central Bank of Syria, described remittances to Syria as a “lifeline” for the Syrian economy, noting that transfers from the United Arab Emirates alone range between $700–800 million annually.

In an interview with Sky News Arabia published Tuesday, September 16, Hasriyeh said that the exchange rate in the official market has become close to the black-market rate.

The dollar currently trades at 11,580 Syrian pounds on the black market, while the Central Bank has fixed the official rate at 11,000 pounds per dollar since last May.

Expectations of “significant” growth

Hasriyeh predicted that the Syrian banking sector will witness “significant growth” over the next five years, reaching 30–35 local, foreign, and Arab banks. He asserted that by then, Syria will have an effective monetary policy capable of ensuring growth and price stability, alongside the return of large-scale investments and major projects.

However, he acknowledged the challenges: “lack of domestic liquidity and the difficulty of reintegrating into the international financial system.” He added that senior officials at the International Monetary Fund and G20 finance ministers estimate that Syria could become the “next tiger of the region,” citing examples such as Vietnam.

“There is a shortage in banking infrastructure, especially after Syria’s 15-year exit from the global financial system,” he said, stressing that rebuilding trust with international correspondent banks is a long process that requires legislative reform and stronger compliance with anti-money laundering and counter-terrorism financing rules.

Deposits and withdrawals

The governor rejected any move resembling “forced debt write-offs” at the expense of depositors, saying that “trust is the foundation of trade and the economy.” He added that while such measures may yield short-term gains, they destroy future prospects and undermine confidence.

Hasriyeh stressed that the Syrian state is committed to meeting its financial obligations and has been working to restore citizens’ old rights, whether linked to insurance or unfair rental laws. Still, the restrictions on bank withdrawals, introduced after the Lebanese banking crisis of October 2019, “are not normal,” he said, adding that they persisted until they became entrenched in Syria’s economy.

The Central Bank, he noted, is in constant dialogue with local banks to reach a mechanism ensuring unrestricted withdrawals, describing the continuation of the status quo as “unsustainable.”

Hoarding and foreign currency

The governor urged Syrians to avoid individual behaviors that worsen the crisis, such as excessive hoarding or turning to foreign currencies, which he described as “selfish acts” that halt economic activity and lead to collective impoverishment.

He emphasized that the Syrian government has chosen the “hard but correct path”, relying on real investment rather than relying on temporary support from foreign deposits.

He outlined programs to promote financial inclusion, including:

• Introducing electronic payment services and digital solutions.

• Establishing a Credit Bureau to assess the creditworthiness of individuals and companies.

• Targeting four groups: tech entrepreneurs, women, educated youth seeking financial support, and marginalized groups.

• Offering diverse banking products, including Islamic banking, to ensure a variety of options.

Removing two zeros and issuing new currency

Hasriyeh confirmed that the decision to remove two zeros from the Syrian pound and issue new banknotes is not just a technical change, and does not affect the real value or purchasing power of the currency.

“The decision does not change the value of the currency, but its nominal form,” he explained, saying the primary goal is to simplify transactions and facilitate daily dealings in an economy where numbers have been inflated by years of depreciation.

Syria is preparing to issue a new series of banknotes that removes two zeros from existing denominations, in a step aimed at restoring public trust in the pound and reviving the local economy.

Stages of replacing the Syrian pound

The governor said the reform will be launched at an “appropriate time,” linked to the scale of political progress, and will proceed according to Monetary Authority Law No. 23, which outlines clear stages:

• A preparatory phase before launch.

• A coexistence period when old and new notes circulate together.

• A final replacement phase lasting up to five years.

The Central Bank is committed to replacing any old note with a new one during the specified period, Hasriyeh assured, stating: “Anyone holding old pounds will exchange them for new ones, we are fully committed down to the last piastre.”

Lifting restrictions on money transfers

In August, Hasriyeh announced on his Facebook page the cancellation of all restrictions on transferring money between Syrian provinces, including the requirement for prior approval by citizens and companies.

He said the decision is meant to support economic activity and facilitate financial and commercial transactions, while maintaining oversight of suspicious or illegal activities.

The move, he stressed, aims to ease liquidity flows between provinces, allowing free money transfers within Syria without prior approvals, while urging all parties to commit to transparency and use official, safe channels.

Speaking previously to Enab Baladi, Abdul Rahman Mohammed, deputy dean of the Faculty of Economics at Hama University, said the importance of lifting restrictions on internal transfers lies in three key points:

• Liquidity stimulation: Easier movement of funds strengthens the ability of individuals and companies to access money.

• Confidence boost: The decision reflects the government’s commitment to improving the business environment, potentially increasing investor and public trust in the financial system.

• Facilitating transactions: Eliminating prior approval speeds up financial procedures, making it easier for companies and individuals to complete their daily dealings.