World Bank Extends Support to Syria for Reserve and Gold Management
The Syrian financial sector is poised for a significant boost as the World Bank has committed to assisting the Central Bank of Syria in rebuilding its foreign currency and gold reserves. This initiative aims to enhance liquidity and support the national economy's recovery following more than a decade of conflict.
Agreement Details and Strategic Talks
According to the Syrian Arab News Agency (SANA), the agreement was reached during discussions between Central Bank Governor Abdulkader Husrieh and Katarzyna Zajdel-Kurowska, director of the World Bank Group Treasury's Partnerships and Advisory Department. The talks focused on providing specialized technical assistance to the reserves management and gold department at the Central Bank of Syria.
In a statement posted on the central bank's official Facebook page, Governor Husrieh emphasized that this meeting aligns with current changes, particularly the lifting of sanctions, which presents opportunities to reactivate investment and improve the management of reserves and gold. He described the initiative as "the beginning of a reform path aimed at enhancing financial stability and supporting efforts to rebuild the national economy."
Economic Context and Reconstruction Costs
This development comes as Syria seeks to reconstruct its economic framework after prolonged conflict. The World Bank estimates that reconstruction costs total approximately $216 billion, with direct damage to infrastructure, housing, and other assets amounting to around $108 billion. The cooperation with the World Bank is expected to contribute positively to raising liquidity levels and reserves, as noted by Husrieh in discussions about positive developments related to Syria's unity.
Technical Assistance and International Standards
The World Bank-backed program will offer specialized technical assistance to develop reserve and gold management systems, aiming to improve efficiency and align practices with international standards. This includes enhancing the institutional structure and asset management capabilities at the central bank.
Broader Financial Sector Modernization
In related efforts, Finance Minister Mohamed Yisr Barnieh and Governor Husrieh have also engaged with the International Monetary Fund (IMF) on programs for technical support and capacity building. These discussions focus on modernizing Syria's financial, banking, and capital markets sectors to foster broader economic stability.
Previous World Bank Initiatives in Syria
Earlier this year, in February, the World Bank announced $50 million in support for vital transportation projects in Syria, highlighting ongoing efforts to enhance cooperation in areas such as railway and sustainable transport. This latest agreement on reserve management further underscores the World Bank's commitment to aiding Syria's economic recovery and development.
