The US Treasury announced that it was pleased the Central Bank of Syria reopened its account at the Federal Reserve Bank of New York, signifying the first time it has been operational since 2011.
The account had effectively been frozen following the outbreak of Syria’s civil war in 2011, when Washington imposed sweeping sanctions targeting the Syrian government, state institutions, and individuals associated with the regime, designed to isolate Damascus financially and limit its access to international banking networks.
It is the most recent step in the attempts to reintegrate Syria into the global financial system. The country is also rejoining the Society for Worldwide Interbank Financial Telecommunication network, a step that would bring an end to about 14 years of financial isolation and recovery of access to global banking networks.
In a statement posted on social media, the US Treasury Department stated that it was working with Syria’s new authorities to “responsibly reintegrate Syria into the global financial system,” citing that it accepted the Syrian central bank’s announcement that its account at the New York Fed had been restored.
The post reported, “Sanctions relief was just the first step to realizing the President of the United States’ historic vision of greatness and prosperity in Syria.”
The release indicated, “We welcome the Syrian Central Bank’s momentous announcement that its account at the Federal Reserve Bank of New York was officially reactivated for the first time since 2011.”
Sanctions have continued to widen over the period of the over 13-year conflict to include more economic sanctions such as the Caesar Syria Civilian Protection Act that was passed in 2019, which targeted foreign actors doing business with the Syrian government.
Therefore, the actions have added to the severe financial isolation of Syria and made humanitarian and reconstruction efforts more difficult.
The process of reestablishing financial channels has been periodically addressed, with international actors evaluating avenues to humanitarian aid and possible economic stabilization.
Nevertheless, the wider frameworks of sanctions are still present, and there are still intense political and regulatory challenges that have defined the re-entry of Syria into the global financial system.
Over the past few years, regional institutions have been increasingly reengaging with Syria as part of a wider push to stabilize the situation there and aid in economic recovery following over a decade of conflict.
Syria restored its membership in the Arab League in 2023, which had suspended it 12 years earlier, and opened diplomatic routes to some Arab countries.
