Syria banks wait to re-enter global market after reactivation of SWIFT codes

Syria is anticipating the reactivation of its banks' SWIFT codes allowing it to re-enter the global financial market following last week’s announcement that the US would be lifting sanctions on the war-torn country.

Both government and foreign-owned banks that operate in Syria have reportedly been given their SWIFT codes, allowing them to operate once again with global correspondent banks.

A SWIFT (Society for Worldwide Interbank Financial Telecommunication) code is a unique identification code for banks and financial institutions globally. These codes are used when transferring money between banks, for international wire transfers and other payments.

US President Donald Trump made a surprise announcement last week during his visit to Saudi Arabia that he is lifting sanctions originally imposed on Syria’s former Assad regime – some of which had been in place for nearly five decades.

In 2019, the US issued very stringent sanctions under the Caesar Act, in response to the Assad regime's atrocities during the Syrian conflict.

Syrian Central Bank Governor Abdul Qadir al-Hasriya, who was appointed last month, replacing Maysa Sabreen, told Alhadath TV earlier this week that Syria will begin to feel the effects of sanctions ending between six months to a year.

Hasriya explained that reactivating the SWIFT system would contribute to bringing foreign trade back into Syria's banking sector, which would lead to a reduction in import costs and facilitate the export process. This, in turn, would bring foreign currency into the country, create job opportunities, and reduce the cost of imported goods.

It would also enable the rebuilding of reserves and depositing them abroad, which would alleviate the burden of cash handling and generate profits from such deposits, he added.

This comes as the World Bank said Friday that it would restart operations in Syria following a 14-year pause, after Saudi Arabia and Qatar had paid off the country's outstanding debts of around $15.5 million to the Washington-based institution.

"After years of conflict, Syria is on a path to recovery and development," the World Bank said in a statement, adding that the first project with the new Syrian government would focus on improving access to electricity – a sector, like most others in the country, battered by the multi-faceted conflict.

"The proposed project is the first step in a planned increase in World Bank Group support designed to confront Syria's urgent needs and invest in long-term development," the Bank said, adding that this would help stabilise Syria and the region.

With a reconstruction bill of hundreds of billions of dollars, post-Assad Syria is seeking foreign financial assistance to help it recover, but the US has set out a list of conditions for the new government in Damascus, which is backed by Turkey.