A source at the Central Bank of Syria told Enab Baladi that a settlement has been reached to restore banking relations between the Syrian central bank and the Federal Reserve Bank of New York.
The source, who requested anonymity as he is not authorized to speak publicly, said on Saturday, February 28, that the Central Bank of Syria’s account at the Federal Reserve has been reopened with the aim of “integrating Syria into the global financial system.”
What is the US Federal Reserve?
The US Federal Reserve System is the central bank of the United States and is considered the most influential financial institution in the world in terms of monetary and financial policy.
The Federal Reserve System consists of:
* The Board of Governors, headquartered in Washington, which sets general policies. * Twelve regional Federal Reserve Banks distributed across different states, which manage daily banking operations. * The Federal Open Market Committee, FOMC, which determines monetary policy and adjusts interest rates.
The Federal Reserve is responsible for:
Managing the US economy and controlling inflation. Ensuring stability in the US banking sector. Facilitating international payments for central banks worldwide. Holding accounts for foreign central banks, such as the account recently reopened by the Central Bank of Syria.Intensive Syrian negotiations with the US Treasury and Federal Reserve
In a press statement distributed to Syrian state media, the Central Bank of Syria said that reactivating its account at the US Federal Reserve is “a step viewed as an indicator of the country’s progress toward reintegration into the global financial system,” after years of isolation and sanctions.
The move comes after months of technical efforts and intensive negotiations coordinated between the Central Bank of Syria, the US Treasury Department, and the Federal Reserve, through meetings and workshops involving specialized teams to complete the necessary legal and technical requirements.
Opening the account at the Federal Reserve is part of Syria’s efforts to restore direct banking relations with Western banks after decades of isolation imposed by war and sanctions.
In mid 2025, Syrian banks completed their first financial transfer via the SWIFT network to an Italian bank since the outbreak of the war 14 years ago. At the time, the central bank said it was looking forward to launching transactions with US banks after several restrictions under the Western sanctions regime were lifted, according to Reuters.
Strengthening the management of foreign reserves
The Central Bank said reopening the account enhances its ability to manage foreign reserves efficiently and secure formal channels for international transfers and payment settlements. According to the statement, this supports monetary and financial stability and strengthens transparency and institutional compliance.
The Governor of the Central Bank, Abdulkader Husrieh, said the step represents a “strategic milestone” in Syria’s path toward reintegration into the international financial system. He added that it would enhance the confidence of international financial institutions in the Syrian banking sector and increase public trust in policies aimed at stabilizing public finances.
The bank also pointed to continued efforts to develop financial compliance mechanisms, strengthen anti money laundering and counter terrorism financing systems, and update relevant regulatory frameworks in line with international standards. These steps aim to address concerns that have hindered foreign banks from resuming direct dealings with the Syrian banking system.
In an exclusive report previously published by Enab Baladi, the US Syrian Business Council revealed in October 2025 that the Syrian central bank had made progress toward establishing an account at the Federal Reserve Bank of New York, describing it as a transformative step toward rebuilding Syria’s sovereign credit profile and regaining access to correspondent banking services.
These developments follow the Syrian government’s engagement in dialogue with international financial institutions and the implementation of internal reforms, including meetings with officials from JPMorgan Chase and extensive discussions on modernizing Syria’s financial policies, as part of efforts to enhance monetary stability and attract foreign capital.
What does the Syrian account in the United States mean?
Reopening the Central Bank of Syria’s account at the US Federal Reserve carries significant banking and technical implications in terms of liquidity, reserve management, and international relations, according to the US financial platform Investopedia.
1. Foreign reserve management
The account allows the Syrian central bank to hold hard currencies, such as the US dollar and the euro, directly at a trusted global institution, enabling it to:
Manage foreign currency reserves more efficiently. Execute international transfers and settle financial obligations for debt or imports without a third party intermediary bank. Support monetary stability by controlling foreign currency liquidity within the country.2. Access to the US financial system
Opening the account means the Syrian central bank can deal directly with the US banking system, including:
Transfers through the Federal Reserve network. Official and legal settlement of payments in US dollars. The possibility of using the account to conduct transactions with other international banks linked to the US system.3. Enhancing international confidence
Having a direct account with the Federal Reserve provides:
An indicator of the central bank’s ability to comply with international standards. A signal to international financial institutions that engaging with Syria has become less risky from a legal and banking perspective. Greater potential to attract trade transactions and foreign investments.4. Greater independence in monetary policy
With the account reopened:
The Syrian central bank can implement more flexible monetary policies, such as supporting the exchange rate or stabilizing the currency market. Dependence on foreign banks or intermediaries to manage international payments is reduced, which is particularly important for Syria after years of strict sanctions.
What does opening a Syrian bank account at the US Federal Reserve mean? Enab Baladi.
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