Syria Projects Stronger Economic Rebound as Refugees Return and Currency Reform Advances, Central Bank Chief Says

Syria’s economic recovery is gaining momentum far beyond international estimates, driven by the return of refugees and efforts to rebuild financial infrastructure after the end of a 14-year civil war, Central Bank Governor AbdulKader Husrieh said on Thursday.

Speaking via video at the Reuters NEXT conference in New York, Husrieh disputed the World Bank’s forecast of 1 percent GDP growth for 2025, saying the projection does not capture the scale of Syria’s resurgence. He noted that roughly 1.5 million Syrians have returned home in recent months, a shift he said is already contributing to economic activity across the country.

Husrieh acknowledged that Syria still struggles to collect reliable data, but pointed to easing inflation and a firmer Syrian pound as indicators of improving conditions. The pound traded at 11,057 to the US dollar on Thursday, according to LSEG Workspace.

A major component of Syria’s recovery effort includes a planned currency overhaul. Husrieh confirmed preparations to introduce a new Syrian currency with eight denominations and said authorities will remove two zeroes from existing notes to help restore confidence in the lira. He described the launch as a turning point for a financial system that has endured decades of strain.

“The new currency will be a signal and symbol of this financial liberation,” he said, noting that Syria is ending nearly 70 years of central bank deficit financing to stabilize public finances.

In parallel with the monetary changes, the central bank is expanding cooperation with global financial institutions. Husrieh welcomed a new agreement with Visa to build a digital payments ecosystem, marking the company’s return to Syria. He said Syrian officials are also in talks with Mastercard as part of a broader plan to modernize payment systems and position the country as a financial hub for the Levant.

Syria is also working with the International Monetary Fund to improve its ability to measure economic performance, an effort aimed at reassuring international lenders and investors. The central bank has hosted workshops with banks from the United States, Turkey, Jordan and Australia to discuss updated due-diligence standards and strengthen controls related to money laundering and terrorism financing.

Husrieh described the recent suspension of US Caesar Act sanctions as a major step toward reintegration. The US Treasury last month extended the suspension by 180 days. While full repeal would require approval from Congress, he said discussions with lawmakers suggest the sanctions could be lifted by the end of 2025.

“Once this happens, this will give comfort to our potential correspondent banks about dealing with Syria,” he said.

The World Bank’s July estimate projected only a modest uptick in Syria’s economy after a 1.5 percent contraction in 2024 due to liquidity constraints, security issues and reduced foreign assistance. Husrieh argued that those estimates underestimate Syria’s trajectory as returning citizens, regulatory reforms and new financial partnerships reshape the country’s economic landscape.