Exclusive: European Move to Damascus Opens New Horizons for Financial Recovery

The Governor of the Central Bank of Syria, Dr. Abdul Qader Al-Hasriya, stressed that the recent announcement by the European Commission on the full resumption of the cooperation agreement with Syria represents a fundamental shift that supports the Bank's strategy in the next phase.

It will contribute to the stability of the local monetary system

Commenting on the reference document, prepared by the European Bloc's diplomatic department and distributed to member states over the past few days on the resumption of cooperation with Syria, Husriya said in a statement published today that this move is a "strong positive indicator" that reflects the beginning of a tangible financial and economic opening with international institutions, noting that this would  directly reflect on the stability of the local monetary system.

Dr. Al-Hossiriya believes that the restoration of the cooperation agreement with Syria will directly reflect on the quality and environment of banking in Syria, as it will contribute to reconnecting local banks to the European financial network.

  This development will facilitate the flow of capital and remittances, removing the technical obstacles that have faced the financial sector for many years as a result of sanctions and political rupture.

Lever for Reconstruction Efforts

The QIB Governor stressed that the European openness provides an ideal platform to support reconstruction projects, by facilitating access to financing resources and technical expertise that the EU countries have.

He explained that the Central Bank views these data as a historic opportunity to link national needs with European investment capabilities, in order to accelerate the turnover of the Syrian economy.

Creating a national monetary environment

  He pointed  out  that the Central Bank of Syria is committed to creating a flexible monetary environment capable of absorbing the repercussions of this openness. He pointed out that work is underway to develop banking instruments and monetary policies to be compatible with international standards, in order to ensure the protection of the national interest and support the comprehensive economic recovery path that the country seeks in its transitional phase.

 The European Commission recently  circulated a proposal to member states to reactivate the 1978 agreement with Syria, which observers see as a green light for global financial institutions to resume their activity in the Syrian market after most economic sanctions were lifted last May.

Strengthening Reserve and Gold Management with the World Bank

In another context,  the Governor of the Central Bank of Syria, Abdul Qader Al-Hasriya, discussed with the World Bank's Asset Management, Advisory Services and Reserves Advisory Team, headed by Catarzyna Croatia, the prospects of technical cooperation and ways to enhance the capabilities of the banking sector, in light of the positive economic developments witnessed in Syria recently.

Al-Hosuliya said on his Facebook page on Tuesday that it was agreed to provide specialized technical assistance targeting the Reserve and Gold Management Department at the Central Bank, with the support of a dedicated program at the World Bank aimed at developing the institutional structure and enhancing efficiency in the management of assets, reserves and gold.

The Governor pointed out that the current changes, especially the lifting of sanctions, provide opportunities to reactivate investment and improve the management of reserves and gold at the Central Bank, stressing that this step is the beginning of a reform path that will enhance financial stability and support efforts to rebuild the national economy.

The governor of the Central Bank of Syria discussed yesterday with the governor of the Austrian Central Bank, Martin Kocher, in the capital Vienna, the restoration of financial relations between the two countries, and the resumption of remittances.