Turkey-Syria Banking Deal: Currency Swaps on the Horizon

In a major step toward regional economic reintegration, Syria is finalizing a deal to establish a correspondent bank account with the Central Bank of the Republic of Türkiye (TCMB). The move announced by Syrian Central Bank Governor AbdulKader AlHussrieh during a visit to Istanbul on April 10, 2026, aims to replace current cash-only trade with a formal, institutionalized financial framework.

Since the transition of power in late 2024, Turkey has emerged as the primary backer of the Ahmed al-Sharaa administration, facilitating Syria’s efforts to rebuild its war-torn economy and break decades of financial isolation.

Bridging the Payment Gap

Despite a 60% surge in Turkish exports to Syria last year (reaching $3.5 billion), the lack of a cross-border payment system has remained the largest barrier for businesses. Currently, trade is largely handled through traditional money transfer offices or physical cash.

The new banking agreement is expected to introduce:

• Correspondent Accounts: Direct links between the Central Bank of Syria and the TCMB to facilitate seamless trade finance.

• Integrated Payment Systems: Moving away from cash toward digital settlements and structured trade finance.

• Bank Expansion: Turkish state lender Ziraat Bank and private Aktif Bank are expected to begin operations within Syria “in the near term” to support Turkish investors.

Turkey-Syria Banking Deal: The Currency Swap Proposal

Governor AlHussrieh also confirmed that a currency swap agreement is on the table. This mechanism would allow both nations to trade in their local currencies (the Turkish Lira and the New Syrian Pound), reducing reliance on the US Dollar and alleviating liquidity pressures on the Syrian economy.

Trade Objectives: Targeting $10 Billion

The institutionalization of banking ties is seen as a prerequisite for the ambitious trade goals set by both nations.

Rebuilding the Syrian Financial Identity

The “Citizen Version” of the 2026 Syrian budget, which projects a 10% growth rate, relies heavily on these burgeoning ties with Ankara. By establishing strong correspondent banking relationships, Damascus aims to signal to the global market that Syria is open for investment and capable of managing international financial transactions.

Governor AlHussrieh noted that cooperation is becoming “increasingly institutionalized,” suggesting that this banking deal is just the first layer of a broader economic integration strategy between the two neighbors.

Source: Reuters