The United Nations Development Programme (UNDP) and the Central Bank of Syria (CBS) have entered into a new strategic partnership aimed at reinforcing financial stability and accelerating institutional reform, marking one of the most significant international engagements with Syria’s financial sector in years.
The agreement — formalized through a Letter of Agreement under the STAF project — comes as Syria confronts a deeply damaged economy, a sharply contracting GDP, and widespread institutional breakdown after more than a decade of conflict.
A Financial System Under Strain
Syria’s banking sector has been among the hardest hit. Hyperinflation, a collapsing currency, and the shutdown of more than 40 percent of public bank branches have left the system struggling to perform even basic functions. Liquidity shortages, outdated payment systems, and weakened regulatory oversight have further eroded public trust.
Against this backdrop, the UNDP–CBS partnership seeks to provide targeted technical expertise, strengthen supervisory and regulatory frameworks, and modernize the central bank’s operational and digital infrastructure. These efforts align with the CBS’s five-year reform strategy, which prioritizes restoring monetary stability and rebuilding confidence in the financial system.
UNDP: “A Commitment to Strengthening National Institutions”
Dr. Mohamed Madawi, UNDP’s Acting Resident Representative in Syria, underscored the significance of the agreement.
“This partnership underscores our commitment to supporting national institutions and fostering a more stable and accountable financial system,” he said. Evidence-based reforms and stronger governance, he added, are essential for a sustainable, locally driven recovery.
Central Bank: “A Milestone in Rebuilding Trust”
Central Bank Governor Abdul Qader Hisriya described the agreement as a pivotal step in restoring credibility.
“This represents an important milestone in rebuilding trust in the financial system,” Hisriya said. “By enhancing governance, oversight, and institutional capacities, we are supporting the restoration of monetary stability and protecting citizens’ livelihoods, while responsibly working to reconnect Syria with the international financial system.”
UNDP framed the partnership as a cornerstone of broader economic recovery efforts, emphasizing that financial stability is a prerequisite for improving living conditions and enabling communities to rebuild.
A Deal Signed Amid Regional Turbulence
The announcement comes at a moment of heightened regional tension. Recent cyberattacks on Syrian government institutions and concerns over the economic fallout from escalating military confrontation between U.S.-led forces, Israel, and Iran have added new layers of uncertainty to Syria’s already fragile economic landscape.
For Syrian authorities, the agreement with UNDP signals an attempt to reinforce the country’s financial defenses and stabilize key institutions as the region enters a period of renewed volatility.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
