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RIYADH: Syria will adopt a unified exchange rate before transitioning to a managed float system as it seeks to stabilize a currency that has lost nearly all its value against the US dollar.

In an interview with the Financial Times, Central Bank of Syria’s Governor Abdulkader Husrieh confirmed the reforms, emphasizing efforts to eliminate the role of unauthorized money changers in the country’s foreign exchange market as part of broader financial reconstruction.

Syria is also set to be fully reintegrated into the SWIFT international money transfer system within weeks, reconnecting the country to global finance after 14 years of war and sanctions. 

The country is working to revive its economy after years of conflict, with its transitional government, led by President Ahmed Al-Sharaa, implementing reforms such as privatizing state-owned firms, easing import restrictions, and attracting foreign investment. 

“We aim to enhance the brand of the country as a financial hub given the expected foreign direct investment in rebuilding and infrastructure — this is crucial,” Husrieh told the FT.

Key developments in Syria include a $7 billion energy deal with Qatar, the reopening of the Damascus Securities Exchange, and a $300 million fiber-optic project with Gulf telecom companies. These initiatives come as �������� and Qatar pledge financial support to help stabilize Syria’s economy amid a gradual easing of Western sanctions.

SWIFT reconnection to boost trade and investment 

The reintegration into SWIFT marks a milestone in the new government’s economic liberalization efforts following the lifting of US sanctions last month.

The Society for Worldwide Interbank Financial Telecommunications is a global cooperative that facilitates secure international money and security transfers through a vast messaging network, enabling banks and financial institutions to exchange information and instructions for financial transactions.

Husrieh, who took office in April, said that significant progress has been made but acknowledged that there’s still much work ahead.

Post-war economic challenges 

Since 2011, Syria has been isolated from global markets due to war and sanctions. The economy collapsed under ex-President Bashar Assad and when Al-Sharaa took power last December, his government swiftly introduced free-market reforms to revive the economy and reassure wary foreign investors. 

Last month, President Donald Trump’s announcement of lifting sanctions provided a major boost, but Husrieh stressed that “a full policy shift is still needed,” calling for comprehensive sanctions removal rather than selective measures.

“The central bank previously micromanaged the financial system, overregulated lending, and restricted withdrawals,” he said. “We’re reforming through recapitalization, deregulation, and re-establishing banks as intermediaries between households and businesses.”

Reconnecting to SWIFT will reduce import costs, facilitate exports, and curb reliance on informal financial networks. Husrieh said all foreign trade will now go through formal banks, cutting out money changers who took a 40 percent cut on dollar transactions. 

Before Assad left the presidency, the Syrian pound plummeted. While it has since strengthened, volatility remains. Husrieh aims to unify official and black-market rates before transitioning to a managed floating exchange rate system. 

Gulf nations are actively supporting the reforms in Syria, and �������� and Qatar cleared the country’s World Bank debt and pledged to cover public sector salaries for three months. 

“Effective May 12, 2025, the arrears of approximately $15.5 million due to the International Development Association by the Syrian Arab Republic have been cleared,” the World Bank confirmed on May 16.

SINGAPORE: Oil prices slipped on Monday on weak China data, but held on to most of last week’s gains, as investors awaited US-China trade talks in London later in the day, hoping a deal could boost the global economic outlook and fuel demand.
Brent crude futures slipped 18 cents, or 0.27 percent, to $66.29 a barrel by 08:44 a.m. Saudi time. US West Texas Intermediate crude fell 15 cents, or 0.23 percent, to $64.43.
China’s exports growth slowed to a three-month low in May as US tariffs slammed shipments, data showed, while factory-gate deflation deepened to its worst in two years, heaping pressure on the world’s second-largest economy both at home and abroad.
The data also showed that China’s crude oil imports declined in May to the lowest daily rate in four months, as state-owned and independent refiners underwent widespread planned maintenance.
“Bad timing for crude oil, which was testing the top of the range and knocking on the door of a technical break above $65,” said IG market analyst Tony Sycamore, referring to WTI prices.
“That said I would expect the reaction to be less extreme than usual, given US and China trade talks later today.”
Brent had advanced 4 percent, and WTI gained 6.2 percent, last week for their first weekly gain in three, as the prospect of a US-China trade deal boosted some investors’ risk appetite.
A US jobs report showing unemployment held steady in May appeared to increase the odds of a Federal Reserve interest rate cut, further supporting gains last week.
The prospect of a China-US trade deal that could support economic growth and increase demand for oil outweighed worries about increased OPEC+ supply after the group announced on May 31 another big output hike for July.
HSBC expects OPEC+ to accelerate supply hikes in August and September, which are likely to raise downside risks to the bank’s $65-per-barrel Brent forecast from the fourth quarter of 2025, it said in a research note on Friday.
Capital Economics researchers said they believe the “new faster pace of (OPEC+) production rises is here to stay.”
WTI’s discount to Brent has also been narrowing on a combination of increased OPEC+ output, modest US crude oil supply growth and the potential for output declines next year, ING analysts led by Warren Patterson said in a note.
The US benchmark strengthened on supply concerns after wildfires disrupted production in Canada and robust US fuel demand during the summer driving season.
The number of operating US oil rigs, an early indicator of future output, fell by nine to 442 last week, energy services firm Baker Hughes said on Friday.