Syria has taken a critical step toward economic recovery by completing its first international bank transaction via the SWIFT messaging system since the eruption of civil war in 2011. Central Bank Governor Abdelkader Husriyeh confirmed that a direct commercial payment was successfully settled with an Italian correspondent bank, marking a symbolic end to over a decade of financial isolation. This milestone signals Damascus’s reentry into the global banking network, offering much‑needed channels for reconstruction funding, foreign investment and remittance flows that could transform the war‑battered economy.

Through this SWIFT reconnection, Syrian banks gain the technical infrastructure to send and receive secure transaction instructions worldwide—an essential prerequisite for large‑scale imports of medical supplies, energy, machinery and building materials. As Syria grapples with staggering reconstruction needs estimated at over \$400 billion, access to international payment rails will enable the government and private sector to tap into foreign capital, diaspora remittances and development aid in a transparent, regulated manner.

Breaking the Financial Isolation

The Syrian financial system was effectively severed from the international community following Western sanctions imposed after a brutal crackdown on protests in 2011. Over 300 measures targeted Damascus’s central bank, state‐owned banks and key economic actors, choking off correspondent relationships with major Western banks and forcing Syrian institutions to rely on cumbersome informal channels. High‑value transactions needed manual vetting, often through multiple intermediaries in neighbouring countries, adding weeks of delay and hefty fees.

Now, with SWIFT access restored, Syrian banks can transmit payment orders instantly, cutting transaction times from days or weeks to mere seconds. This efficiency is vital for stabilizing the Syrian pound, which has endured wild volatility in parallel markets, and for rebuilding confidence among importers who previously faced precarious terms or outright refusals from foreign suppliers. The ability to settle letters of credit and trade financing through recognized international counterparties will encourage merchants to re‑establish supply chains, invigorating commerce in cities and towns still recovering from conflict.

Governor Husriyeh’s announcement follows coordinated diplomatic efforts that saw the U.S. ease central‑bank sanctions earlier this year and the European Union lift most economic restrictions. These policy shifts were driven by changing geopolitical dynamics—including new interim leadership in Damascus—and by international recognition that Syria’s reconstruction success is critical to regional stability. As financial isolation recedes, Syrian banks will need to demonstrate robust compliance systems to satisfy anti–money‑laundering and counter‑terror financing standards, a process likely supported by technical assistance from global financial institutions.

Catalyst for Reconstruction Funding

Rebuilding Syria’s devastated infrastructure—from power plants and water networks to hospitals and schools—requires massive capital inflows. With SWIFT connectivity, Damascus can now more readily channel international grants and loans, including those from multilateral development banks and Gulf‑state reconstruction funds. Early indicators suggest that the Syrian government is in advanced talks with several donor countries to secure low‑interest credits for rebuilding major urban centres like Aleppo and Homs.

Private investors, too, may be drawn by return prospects in sectors such as telecommunications, agribusiness and tourism once payment certainty is assured. For instance, reconstruction of the ancient souks and Ottoman‐era districts in Damascus and Aleppo presents opportunities for hospitality ventures, boutique hotels and cultural tourism—areas that previously languished under economic embargos. Institutional investors have long cited the absence of a reliable banking corridor as the main barrier to deployment of foreign direct investment; SWIFT access removes that obstacle, allowing equity and debt flows to be serviced and repatriated under recognized protocols.

Equally significant is the facilitation of remittances from the Syrian diaspora, estimated at over 9 million people. Before SWIFT, these transfers were often routed through informal hawala networks or subject to steep banking fees, eroding the value of funds sent home. Official channels via SWIFT will cut transfer costs and risks, ensuring families across Syria have stable access to dollars and euros for household needs. This infusion of hard currency can shore up local markets, stabilize exchange rates and reduce inflationary pressures that have pushed nine out of ten Syrians into poverty.

Path to Economic Rebuilding and International Trust

While the SWIFT transaction marks a turning point, full financial reintegration demands more than technical connectivity. Syria’s banking sector must now align with global regulatory norms, enhance transparency and rebuild correspondent ties with major international banks. Governor Husriyeh has extended formal invitations to leading U.S. and European banks to establish representative offices in Damascus, signalling confidence that Syria’s risk profile is shifting toward normalized business conditions.

To secure correspondent relationships, Syrian banks will need to pass rigorous due‑diligence checks, demonstrate strong governance and implement advanced compliance frameworks. Partnerships with international consultants and regional central banks could provide the training and technology necessary to meet these standards. Over time, as Syrian banks clear these hurdles, they can regain access to trade finance lines, SWAP agreements and credit‐rating evaluations that underpin debt issuance and bond market participation.

Beyond bank‑to‑bank links, the SWIFT restoration bolsters Syria’s credibility with global markets, potentially paving the way for sovereign or quasi‑sovereign instruments to fund public‑private partnerships in energy, transport and telecommunications. Anecdotal reports suggest that Middle Eastern and Asian investors are cautiously exploring infrastructure consortiums, eyeing returns on power‐plant renovations and port upgrades along the Mediterranean coast.

As Damascus navigates phased sanctions relief, the central bank’s success in executing clean SWIFT transfers will be closely monitored by regulators in the U.S. and EU, as well as by ratings agencies. A track record of transparent transactions, timely reporting and cooperation with international auditors will be essential to unlocking deeper capital markets and re‑establishing Syria as a creditworthy borrower. In parallel, rebuilding consumer and business confidence will depend on improved payment services, wider access to foreign currency accounts and clear legal frameworks for cross‑border commerce.

Syria’s first global SWIFT transfer since war underscores the profound importance of secure, reliable financial plumbing in post‑conflict recovery. By reconnecting to the world’s primary payments network, Syria can unlock the floodgates of reconstruction financing, stimulate foreign and domestic investment, and restore remittance lifelines vital to millions of households. The journey toward full financial normalization remains complex, requiring sustained reforms and international cooperation. Yet this landmark transaction offers a tangible symbol of Syria’s emergence from years of isolation, opening a new chapter in its arduous path to economic revival.

(Adapted from Reuters.com)

Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy