A Turkish researcher has disclosed that the Autonomous Administration in Northeastern Syria (AANES) is laying the groundwork for a financial management system akin to a “central bank.” This effort is being pursued in collaboration with a Jordanian company and supported by the United States.
According to Omar Ozkizilcik, the Turkish researcher, this financial institution could have adverse effects on Syria’s territorial integrity. He noted, “With the relative decrease in tension and conflict in Syria, a new form of competition has emerged—a race between different governance models across four zones of control, each aiming to prove its superiority.”
Ozkizilcik, in an article published on the Turkish website Aslında, explained that the Assad regime seeks to reaffirm its grip over Syria, while the Autonomous Administration of North and East Syria (linked to the YPG), and the Syrian Salvation Government (aligned with Hay’at Tahrir al-Sham in Idlib), are each promoting their respective visions. Meanwhile, the Syrian Interim Government, backed by Turkey, has established administrative control over safe zones in the country.
He further elaborated that the U.S. is heavily investing in development projects in northeastern Syria as part of its 2022 policy shift, supporting infrastructure aimed at strengthening YPG-controlled areas. He noted that “areas under YPG and Syrian Interim Government control, except for Afrin, have been opened for investment, while territories controlled by the Assad regime and Hay’at Tahrir al-Sham remain under sanctions.”
Agreement with a Jordanian Company
The researcher highlighted that one of the biggest challenges to these investments is the absence of formal financial systems and regulatory frameworks. He emphasized the need for a supervisory body to oversee financial activities in these regions. While Damascus operates a central bank and Idlib’s Syrian Salvation Government has established a financial management authority with systems compatible with Damascus, the situation in the YPG-controlled regions is distinct.
Ozkizilcik revealed that a Jordanian company had signed a $4.5 billion investment deal with the Autonomous Administration, brokered by the United States. The funds were used to establish the infrastructure for what functions as a central bank in the YPG-controlled territories.
This financial body, known as the Central Financial Policy Office, was formed in March 2024 with U.S. backing and operates under the supervision of the Executive Council of the Autonomous Administration. Its responsibilities include overseeing all financial operations in the region and issuing necessary regulations and legislation. However, the laws and regulations established by this office are not aligned with those in other parts of Syria, signaling a financial divergence between regions.
Ozkizilcik warned that these developments might lead to financial disintegration between YPG-controlled areas and the rest of Syria, particularly if a political solution is reached. He concluded that the U.S.-backed “central bank” not only facilitates financial autonomy but also lays the foundation for separatist tendencies within the YPG’s sphere of influence in Syria.
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.
