Syria is in the final stages of establishing a correspondent bank account with neighbouring Turkey’s central bank and will also discuss a potential currency swap aimed at boosting trade, the Syrian central bank Chief said.
Turkey has been the main backer of the Syrian government of President Ahmed al-Sharaa since the ousting of Bashar al-Assad in late 2024. Al-Sharaa has been seeking to rebuild state institutions and the economy after more than a decade of war, sanctions and financial isolation.
Trade between the two countries has surged but businesses say the lack of a cross-border payments system was one of the biggest impediments to further growth and investment. A correspondent bank account would help to facilitate cross-border payments and trade finance transactions which traders say are currently cash only and handled by traditional money transfer offices.
In written responses to Reuters questions, Syria’s central bank Governor AbdulKader AlHussrieh said he expected Syrian-Turkish co/operation to expand “into integrated payment systems, cross-border settlements, and more structured trade finance frameworks”.
“Co-operation with Turkey, particularly between the Central Bank of Syria and Turkish authorities, is accelerating and becoming increasingly institutionalized,” said AlHussrieh, who was on a two-day working visit to Turkey this week.
Turkish state lender Ziraat Bank and smaller private Aktif Bank were also expected to begin Syrian operations “in the near term”, he said.
Turkey’s exports to Syria jumped following Assad’s ouster by 60% to $3.5 billion last year, official data show, while Syria’s imports were at $235 million. The countries aim to almost triple trade volume to $10 billion over the medium term.
“This ambition will require a fully functioning financial system in Syria, supported by strong correspondent banking relationships,” AlHussrieh said.
–Reuters–
