Despite growing speculation against the Syrian pound in markets and the currency’s fluctuations against the US dollar, the Central Bank of Syria has accelerated work in recent months on three parallel files: completing the national currency replacement project, granting operating banks broader powers, and establishing network links with Mastercard and Visa.
In all its moves, the Central Bank of Syria is focused on stabilizing the exchange rate through reforms and measures that can achieve this without injecting foreign currency into markets, according to what it recently told Enab Baladi. Among its latest measures is its plan to establish an exchange association in Syria and regulate the work of exchange companies within an institutional framework that strengthens transparency and discipline in the financial market.
55% of Old Currency Replaced
An informed banking director, who asked not to be named for administrative reasons, told Enab Baladi that the replacement rate for the old national currency rose from 35% of the old money supply, estimated at around 42 trillion Syrian pounds, to about 55%, reflecting a faster pace in implementing the replacement process.
The process was accompanied by oversight operations to destroy old banknotes under the supervision of the Central Financial Control Authority, to modernize the money supply and strengthen monetary stability, according to the director. “In parallel with currency replacement, organizing the exchange market emerged as one of the most prominent challenges, especially with the spread of informal transactions and the existence of gaps between the regulated market and the parallel market.”
The director said controlling the exchange market and limiting unlicensed activity is a priority for the Central Bank in order to protect monetary stability.
The Central Bank of Syria officially launched the currency replacement project after Decree No. 293 of 2025 was issued, granting the bank powers to set exchange deadlines and centers, and setting January 1, 2026, as the start date for the process. Governor Abdulkader Husrieh said at the time that the step represented “the beginning of a new economic and monetary phase.”
Wider Powers for Banks
According to the director, the Central Bank of Syria is studying granting operating banks broader powers, particularly in foreign currency exchange and the buying and selling of foreign currency, bringing them closer to the role performed by licensed exchange companies. The aim is to expand official channels for citizens and traders and reduce reliance on the black market.
The director explained that if the step is adopted, banks will no longer remain merely deposit and financing institutions, but will become integrated financial service centers that include liquidity management, foreign exchange, and transfers with greater flexibility. This would strengthen confidence in local banks and increase their competitiveness, especially as international connectivity approaches and international payment tools develop.
20 banks are operating in Syria, including six fully state-owned public banks that hold the largest market share of financial activity, and 14 private banks, divided between 11 conventional banks and three Islamic banks. All are subject to supervision and oversight by the Central Bank of Syria, according to indicators from the Syrian Commission on Financial Markets and Securities.
Shareholders in private banks come from a range of nationalities, including Arab and foreign partnerships, with Lebanon, Jordan, Qatar, Bahrain, and Saudi Arabia among the most prominent Arab contributors, in addition to contributions from France. These banks operate as closed joint-stock companies, in which the Syrian state, especially the Syrian Development Fund and the sovereign fund, owns no less than 51% of the capital under Syrian law, particularly after the seizure of movable and immovable assets belonging to figures of the former regime.
What Services Do Exchange Companies and Offices Provide
Services provided by exchange companies in Syria mainly focus on dealing in foreign currency and financial transfers under controls set by the Central Bank of Syria. They are broader than the powers of traditional banks in the area of direct daily exchange.
The main powers include:
The director told Enab Baladi that expanding the powers of banks operating in Syria to include some of the powers of exchange companies and offices gives the market more organized and stable tools, making the coming months decisive in shaping Syria’s new financial phase. He said granting banks these powers means reducing the role of the black market.
Network Links With Mastercard and Visa
This track began with the Central Bank of Syria’s announcement in recent months that it had completed the settlement of a number of its external banking relationships, most recently with Austrian and French banks, in parallel with work to reactivate the SWIFT system and prepare for restored links with global financial networks.
The same director said the bank is continuing work on network links with Mastercard and Visa, with the aim of enabling international cards to operate through Syrian banks and opening the way for more regular electronic payment services and external transfers.
He revealed that the link with the two companies will come to light by the end of next May, representing an important step toward reintegrating the Syrian banking sector into the global financial system.
According to the same source, the success of this link would facilitate payment operations for traders and importers, improve transfer services for Syrians abroad, and reduce reliance on direct cash. It would also give operating banks new tools to expand their electronic services at a time when the government is seeking to ease pressure on traditional cash circulation.
The Central Bank of Syria announced in December 2025 an agreement with Visa on a roadmap to build a modern digital payments system and strengthen financial inclusion in Syria.
The Central Bank also signed a memorandum of understanding with Mastercard International in September 2025 to cooperate on developing Syria’s digital payments system, to improve the country’s digital payment infrastructure, exchange expertise, strengthen financial inclusion, and explore opportunities to expand access to basic financial services for millions of people.
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