Central Bank of Syria (CBS)

Overview

The Central Bank of Syria (CBS) serves as the Syrian Arab Republic's primary monetary authority and financial regulator. The CBS manages monetary policy, foreign exchange reserves, payment systems, and prudential supervision of the banking sector within a context of significant recent political transformation and ongoing economic recovery.

Institutional Status & Recent Transitions

Established: Predecessor institutions dating to Syrian independence (1946); modern form under Syrian Constitution
Jurisdiction: Syrian Arab Republic
Primary Currency: Syrian Pound (SYP)
Regulatory Model: Integrated central bank combining monetary policy, banking supervision, and financial regulation
Recent Context: Significant institutional changes following December 2024-2025 regime transition
Headquarters: Damascus, Syria

[SIGNIFICANT CONTEXTUAL CAVEAT]

This document reflects the CBS in the post-transition period following the fall of the Bashar al-Assad regime (December 2024) and the emergence of a new transitional government. The CBS has undergone substantial institutional disruption, leadership changes, and policy reorientation. Information reflects conditions as of April 2026 and may not fully capture ongoing institutional stabilization efforts.

Basic Identity

Field	Value
Official Name (English)	Central Bank of Syria (CBS)
Official Name (Local Language)	Central Bank of Syria (CBS)
Acronym	CBS
Country	Syria
Jurisdiction Level	National
Official Website	https://en.wikipedia.org/wiki/Central_Bank_of_Syria
Official Website Language(s)	Arabic
Headquarters	Syria
Year Established	2010
Current Status	Active

Classification

Field	Value
Entity Type	Central Bank
Control Layer	Layer 1 — Sovereign/Government Regulator
Legal Authority Level	Binding
Jurisdiction Level	National
Scope of Power	Licensing, Supervision, Enforcement, Rulemaking

Inclusion Justification

Field	Value
Why This Entity Is Included	Primary monetary authority with statutory powers over banking supervision, monetary policy, payment systems, and financial stability
Type of Influence	Direct
Exclusion Risk	Removes the foundational monetary and banking regulatory authority from the directory, making the jurisdiction's financial control structure incomprehensible

What This Entity Oversees

Supervisory Functions

Monetary Policy & Currency Management

The CBS exercises monetary policy authority including:

Monetary Targeting: Interest rate setting and monetary aggregate management
Currency Issuance: Exclusive authority to issue Syrian Pound banknotes and coins
Exchange Rate Policy: Official exchange rate determination and foreign currency management
Inflation Control: Policy aimed at price stability (despite historical hyperinflation episodes)
Liquidity Management: Reserve requirement setting and central bank lending facilities

Banking Supervision

The CBS exercises prudential supervision of:

Credit Institutions: Banks, savings institutions, and credit cooperatives
Capital Requirements: Supervision of banking sector capital adequacy
Loan Classification: Standards for credit quality assessment and provisioning
Liquidity Management: Monitoring of bank liquidity positions and stress resilience
Authorization & Licensing: Grant and withdrawal of banking licenses
On-Site Inspections: Examinations and audits of banking operations

Payment Systems & Settlement

CBS oversight of:

Currency Circulation: Management of banknote and coin distribution
Payment Systems: Operation and oversight of domestic payment and settlement infrastructure
Interbank Clearing: Settlement of interbank transactions
Banking Relationships: Maintenance of correspondent banking network (historically constrained by sanctions)

FATF Compliance Framework

Syria has been subject to FATF assessments and AML/CFT evaluations, though the security context has significantly constrained implementation:

FATF Mutual Evaluations: Periodic assessments of AML/CFT framework effectiveness
Deficiency Remediation: Efforts to address AML/CFT gaps (though compliance capacity limited during conflict)
Technical Standards: Alignment with FATF 40 Recommendations and 9 Special Recommendations

AML/CFT Implementation Challenges

During the conflict period, AML/CFT enforcement was severely constrained:

Institutional Capacity: Limited supervisory resources and inter-agency coordination
Financial Crime: Widespread informal financial flows and sanctions evasion
Documentation: Difficulty maintaining customer records and transaction monitoring
International Cooperation: Limited ability to cooperate with foreign authorities due to sanctions isolation

Post-Transition AML/CFT Rebuilding

Following the December 2024 transition, the CBS is rebuilding AML/CFT frameworks:

Financial Intelligence Unit (FIU): Reconstruction or establishment of FIU capacity
Sanctions Compliance: Integration with international sanctions regimes
Customer Due Diligence: Reinstatement of know-your-customer standards
Suspicious Activity Reporting: Reestablishment of SAR collection and analysis

Sanctions Relief & International Reintegration (2024-2026)

Sanctions Lifting

Following the regime transition, major sanctions relief has occurred:

UK & EU Sanctions Lifting:

UK and EU lifted sanctions against the Central Bank of Syria and related entities (early 2025)

Canadian Sanctions Easing:

Canada eased sanctions regime against Syria

US Sanctions Modifications:

May 23, 2025: US Department of Treasury OFAC issued Syria General License 25, authorizing previously prohibited transactions under the Caesar Syria Civilian Protection Act
Partial relief permitting humanitarian and reconstruction transactions

SWIFT System Restoration

June 19, 2025: Syria completed its first international bank transaction through SWIFT since the start of the 14-year civil war

This milestone represents:

Financial Reintegration: Return to global payment system infrastructure
Correspondent Banking: Restoration of relationships with foreign banks
Capital Flows: Opening of channels for international transactions and investment

Banking Crisis & Liquidity Constraints (2025)

Deposit Withdrawal Restrictions

The CBS implemented strict liquidity management measures:

February 2025:

Cash withdrawal limits imposed: SYP 200,000 per transaction, per week (approximately USD 20)

August 2025:

Limit increased to SYP 600,000 per transaction, per week (approximately USD 60)

Underlying Causes

Severe liquidity constraints resulted from:

Reserve Depletion: Minimal foreign exchange reserves limiting currency supply
Currency Depreciation: Syrian Pound weakened substantially against major currencies
Capital Flight: Outflows of deposits during transition period
Economic Disruption: Limited productive activity generating foreign exchange earnings

Policy Response Framework

The CBS implemented:

Capital Controls: Restrictions on currency conversion and international transfers
Parallel Market Monitoring: Efforts to suppress black market foreign exchange activity
Import Financing: Mandatory centralized import financing to preserve foreign exchange
Rial Exclusivity: Requirements for domestic transactions to use SYP (formal rial)

Economic & Security Context

Civil War & Transition Impact

Syria's banking and financial system experienced profound disruption:

14-Year Conflict (2011-2025): Extended civil war limiting normal economic and financial activity
December 2024 Transition: Fall of Assad regime and emergence of transitional government
Sanctions Isolation: International sanctions limiting foreign correspondent banking and capital flows
Infrastructure Damage: Banking sector infrastructure requiring reconstruction

Reconstruction & Development Phase

Current period (2025-2026) characterized by:

Institutional Reconstruction: Rebuilding of CBS capacity and banking sector infrastructure
Sanctions Relief: Progressive lifting of international sanctions enabling reintegration
Currency Stabilization: New currency and monetary reform initiatives
Foreign Investment: Limited but emerging capital inflows for reconstruction
International Cooperation: Engagement with IMF, World Bank, and regional development institutions

Regulatory Priorities & Outlook

Immediate Focus Areas (2026)

Liquidity Management: Addressing acute cash shortage constraints
Currency Stabilization: Successful implementation of new currency regime
Banking System Recovery: Recapitalization and stress relief for banking sector
AML/CFT Reestablishment: Rebuilding compliance frameworks and FIU capacity
Sanctions Integration: Alignment with sanctions relief conditions and international expectations
International Reintegration: Restoration of SWIFT, correspondent banking, and capital flows

Medium-Term Challenges

Reserve Accumulation: Rebuilding foreign currency reserves from depleted base ($200 million)
Credit System Reconstruction: Restoring banking sector intermediation capacity
Inflation Control: Managing currency stability and controlling price pressures
Institutional Capacity: Building supervisory and operational expertise
Conflict Resolution: Supporting broader Syrian peace and reconstruction efforts

Regulatory Powers

This entity exercises the following regulatory powers as the central monetary authority:

Power	Description
Monetary Policy Authority	Formulates and implements monetary policy, including setting key interest rates and reserve requirements
Banking Licensing	Issues, suspends, and revokes banking licenses for commercial banks and financial institutions
Prudential Supervision	Conducts on-site and off-site supervision of licensed financial institutions
Enforcement Authority	Issues directives, imposes penalties, and takes corrective actions against non-compliant institutions
Payment Systems Oversight	Regulates, operates, and/or oversees national payment and settlement systems
Foreign Exchange Authority	Manages foreign exchange reserves and regulates foreign exchange transactions
Currency Issuance	Sole authority to issue and manage national currency
Lender of Last Resort	Provides emergency liquidity assistance to solvent but illiquid financial institutions
AML/CFT Supervision	Supervises compliance with anti-money laundering and counter-terrorism financing requirements
Rulemaking	Issues regulations, guidelines, circulars, and directives binding on regulated entities

Regulatory Role and Function

Leadership Transitions

December 2024 - March 2025:

Maysaa Sabreen appointed as first female Governor of the Central Bank of Syria (December 30, 2024)
Resignation on March 27, 2025
Abdulkader Husrieh succeeded as Governor (April 2025 onwards)

Institutional Disruption Context

The CBS experienced severe institutional stress during the conflict period:

Vault Depletion: As of December 8, 2024, CBS foreign exchange reserves reported at approximately $200 million—a dramatic decline from 2010 levels (estimated $18.5 billion by IMF)
Reserve Losses: Extensive depletion resulting from years of civil conflict, sanctions, and state financial distress
Operational Challenges: Limited capacity to conduct normal central banking functions

Governance

The CBS operates under:

Governor: Executive leadership (current: [April 2025+] Abdulkader Husrieh)
Board/Council: Policy-setting body coordinating monetary and supervisory decisions
Executive Management: Senior leadership team overseeing operational divisions
Banking Supervision Division: Prudential oversight of credit institutions
Financial Regulation Division: Conduct and market supervision
Monetary Policy Division: Interest rates and monetary operations
Currency Management Division: Banknote production and circulation

Contact Information

Headquarters: Damascus, Syrian Arab Republic
Regulatory Authority: Supervision and licensing of banking institutions
International Relations: Coordination with foreign regulators and international financial institutions

Legal Foundation

The CBS operates under Syrian national legislation and constitutional frameworks:

Primary Legal Basis

Central Bank of Syria Law: Foundational legislation establishing CBS structure and mandate
Banking System Laws: Framework regulating credit institutions and banking operations
Monetary Policy Authority: Legal basis for interest rate setting and monetary operations
Currency Law: Authority to issue and manage Syrian Pound currency
AML/CFT Legislation: Anti-money laundering and counter-terrorist financing requirements
Financial Regulation Laws: Prudential requirements for banking sector

Institutional Context

The CBS operates as:

Central Bank & Monetary Authority: Exclusive issuer of Syrian Pound currency
Banking Regulator: Prudential supervision of credit institutions
Financial Supervisor: Oversight of payment systems and settlement infrastructure
Reserve Manager: Custodian of Syria's foreign currency and precious metal reserves
Government Banker: Fiscal agent for the Syrian state

Licensing and Authorization Relevance

The Central Bank of Syria (CBS) is a key licensing authority in Syria's financial system:

License Type	Description
Banking License	Authorization to conduct deposit-taking and lending activities
Payment Service Provider License	Authorization to provide payment services and operate payment systems
Foreign Exchange Dealer License	Authorization to conduct foreign exchange dealing and brokerage
Bureaux de Change License	Authorization to operate money changing services
Money Transfer License	Authorization to provide money transfer and remittance services
Electronic Money Issuer License	Authorization to issue electronic money instruments

The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

New Currency Initiative

In response to currency instability and loss of public confidence:

December 2025 Announcement:

Syria's Central Bank Governor announced introduction of new national currency effective January 1, 2026

Currency Design:

Six Denominations: New currency issued in small, medium, and large denominations
Confidence Building: New design intended to restore public confidence in currency
Economic Stabilization: Part of broader monetary stabilization program

Policy Objectives

The new currency initiative aims to:

Restore Confidence: Replace heavily devalued and worn notes with new currency
Stabilize Value: Anchor currency to reformed monetary policy framework
Reduce Informality: Decrease reliance on foreign currency in domestic transactions
Economic Recovery: Support reconstruction and economic stabilization efforts

Payment Systems Governed or Overseen

The CBS operates and/or oversees the national payment and settlement infrastructure of Syria. Specific systems include:

System Name	Relationship Type	Notes
National RTGS System	Direct operator / Oversight	Real-time gross settlement for high-value transfers
National ACH/Clearing System	Oversight	Automated clearing for retail and batch payments
National Payment Switch	Oversight	Domestic interbank payment switching

[Further detail on specific system names requires verification from official sources]

Relationship to Other Regulators

The Central Bank of Syria (CBS) operates within Syria's broader financial regulatory architecture and maintains relationships with:

Counterpart Type	Relationship
Ministry of Finance / Treasury	Fiscal-monetary policy coordination; government banker functions
Financial Intelligence Unit (FIU)	AML/CFT information sharing and suspicious transaction reporting
Securities Regulator	Coordination on financial stability and systemic risk; shared oversight of financial conglomerates
Insurance Regulator	Coordination on prudential standards for insurance sector where applicable
Deposit Insurance Corporation	Coordination on bank resolution and depositor protection
International Organizations	Cooperation with IMF, World Bank, BIS, and regional central bank networks

Geography and Jurisdiction Notes

Field	Value
Applies Nationwide	Yes
Applies at State or Sub-National Level Only	No
Cross-Border or Regional Reach	No
Special Territorial Notes	National jurisdiction within Syria

Important Departments and Divisions

Division / Department	Primary Function
Banking Supervision Department	Prudential supervision of banks and deposit-taking institutions
Monetary Policy Department	Formulation and implementation of monetary policy
Payment Systems Department	Operation and oversight of payment infrastructure
Financial Stability Department	Systemic risk monitoring and macroprudential policy
Foreign Exchange Department	FX reserves management and exchange rate policy
AML/CFT Compliance Unit	Anti-money laundering supervision and enforcement
Research and Statistics Department	Economic research and data collection

Key Public Resources

Resource	URL
Official Website	https://en.wikipedia.org/wiki/Central_Bank_of_Syria
Laws and Regulations	[Verify on official website]
Licensing Information	[Verify on official website]
Publications and Reports	[Verify on official website]
Consumer Information	[Verify on official website]

Notes on Naming and Language

Field	Value
Preferred English Rendering	Central Bank of Syria (CBS)
Official Local-Language Rendering	Central Bank of Syria (CBS)
Primary Language	Arabic
English Availability	No
Official Website Language(s)	Arabic