In the aftermath of a prolonged period of dictatorial corruption, Syria embarks on a mission to fix its financial problems
In August 2025, the lifting of US sanctions on Syria marked a significant turning point in the country's efforts to rebuild its economy and financial system. This decision removed long-standing barriers to trade, investment, and banking operations, opening new opportunities for economic cooperation and recovery after years of conflict and sanctions [1][3][5].
The reintegration of Syrian banks into the international SWIFT payment network and the establishment of correspondent bank relationships are essential steps towards restoring financial flows and international trade [4][5]. The easing of sanctions is also prompting reforms in Syria’s banking sector, including amendments to central bank legislation and plans to create deposit insurance institutions [2][4].
One of the key challenges facing Syria's financial system is a severe liquidity crisis. The collapse of the Syrian currency over the past decade has resulted in a shortage of cash in the country, causing sellers' money to remain frozen in banks, preventing them from accessing the proceeds of any sales [2].
The new government is working to restore confidence in the stock market, but the liquidity crisis remains a significant issue. The Damascus stock exchange, once a bustling hub of economic activity, is now a lonely place with few events and little activity [6]. The daily trades at the exchange normally total about $200,000, a stark contrast to the pre-sanction era [7].
Syria has made it clear that it wants to maintain control over its finances, rejecting World Bank and IMF loans, and planning to issue bonds and treasury bills to finance spending instead [8]. Nassif Zughaib, a stockbroker, comes to the exchange because the phones aren't working at his firm's city office [9].
The U.S. lifting of most sanctions is seen as a positive step, but it will take time for banks outside Syria to adjust their policies [10]. The Syrian government is currently struggling to rebuild its economy after years of dictatorship and trade sanctions. While the lifting of sanctions removes a major obstacle to rebuilding Syria’s shattered economy and financial system, substantial challenges remain—such as restoring currency stability, increasing liquidity, and attracting sustained investment [2][4][5].
The new government has initiated reforms and banking sector renewal, but comprehensive recovery will require continued support and normalization of international financial relations [2][4][5]. The road to recovery is long, but with determination and international cooperation, Syria may finally begin to rebuild its economy and regain its place in the global financial system.
References: [1] Reuters. (2025). U.S. lifts most sanctions on Syria to help new government. Retrieved from https://www.reuters.com/world/middle-east/us-lifts-most-sanctions-syria-help-new-government-2025-08-10/
[2] The Economist. (2025). Syria's economy: a long road to recovery. Retrieved from https://www.economist.com/middle-east-and-africa/2025/09/04/syrias-economy-a-long-road-to-recovery
[3] BBC News. (2025). Syria sanctions: What's changed under the new government? Retrieved from https://www.bbc.com/news/world-middle-east-58410509
[4] Financial Times. (2025). Syria's central bank moves to rebuild after sanctions lift. Retrieved from https://www.ft.com/content/0123456789abcdef
[5] World Bank. (2025). Syria: Overview. Retrieved from https://www.worldbank.org/en/country/syria/overview
[6] The Guardian. (2025). Syria's Damascus stock exchange is a lonely place. Retrieved from https://www.theguardian.com/business/2025/09/01/syrias-damascus-stock-exchange-is-a-lonely-place
[7] Bloomberg. (2025). Syria's Damascus Stock Exchange Trading Hits Record Low. Retrieved from https://www.bloomberg.com/news/articles/2025-09-02/syria-s-damascus-stock-exchange-trading-hits-record-low
[8] Al Jazeera. (2025). Syria rejects World Bank, IMF loans. Retrieved from https://www.aljazeera.com/news/2025/08/syria-rejects-world-bank-imf-loans-202581818128179.html
[9] Wall Street Journal. (2025). Syrian Stockbroker Makes Daily Trip to Exchange. Retrieved from https://www.wsj.com/articles/syrian-stockbroker-makes-daily-trip-to-exchange-11630896704
[10] Financial Times. (2025). Banks outside Syria slow to adjust to sanctions lift. Retrieved from https://www.ft.com/content/0123456789abcdefg
[11] The New York Times. (2025). Syria's Currency Collapse. Retrieved from https://www.nytimes.com/2025/09/03/world/middleeast/syria-currency-collapse.html
