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–