DAMASCUS: Syria’s new central bank governor, Maysaa Sabreen, said she wants to boost the institution’s independence over monetary policy decisions, in what would be a sea change from the heavy control exerted under the Assad regime.
Sabreen, previously the Central Bank of Syria’s number two, took over in a caretaker role from former governor Mohammed Issam Hazime late last year.
She is a rare example of a former top state employee promoted after Syria’s new Islamic rulers’ lightning offensive led to President Bashar Assad’s fall on Dec. 8.
“The bank is working on preparing draft amendments to the bank’s law to enhance its independence, including allowing it more freedom to make decisions regarding monetary policy,” she told Reuters in her first media interview since taking office.
The changes would need the approval of Syria’s new governing authority, though the process is at this stage unclear. Sabreen gave no indication of timing.
Economists view central bank independence as critical to achieve long-term macroeconomic and financial sector stability.
While the Central Bank of Syria has always been, on paper, an independent institution, under Assad’s regime the bank’s policy decisions were de facto determined by the government.
Syria’s central bank, Sabreen added, was also looking at ways to expand Islamic banking further to bring in Syrians who avoided using traditional banking services.
“This may include giving banks that provide traditional services the option to open Islamic banking branches,” Sabreen, who has served for 20 years at the bank, told Reuters from her office in bustling central Damascus.
Islamic banking complies with sharia, or Islamic law, and bans charging interest as well as investing in prohibited businesses such as trading in alcohol, pork, arms, pornography or gambling. Islamic banking is already well established in the predominantly Muslim nation.
Limited access to international and domestic financing meant the Assad government used the central bank to finance its deficit, stoking inflation.
Sabreen said she is keen for all that to change.
“The bank wants to avoid having to print Syrian pounds because this would have an impact on inflation rates,” she said.
Asked about the size of Syria’s current foreign exchange and gold reserves, Sabreen declined to provide details, saying a balance sheet review was still underway.
Four people familiar with the situation told Reuters in December that the central bank had nearly 26 tons of gold in its vaults, worth around $2.2 billion, some $200 million in foreign currency and a large quantity of Syrian pounds.
The Central Bank of Syria and several former governors are under US sanctions imposed after former Assad’s violent suppression of protests in 2011 that spiralled into a 13-year civil war.
Sabreen said the central bank has enough money in its coffers to pay salaries for civil servants even after a 400 percent raise promised by the new administration. She did not elaborate.
Reuters reported that Qatar would help finance the boost in public sector wages, a process made possible by a US sanctions waiver from Jan. 6 that allows transactions with Syrian governing institutions.
Inflation challenge
Analysts say stabilising the currency and tackling inflation will be Sabreen’s key tasks — as well as putting the financial sector back on a sound footing.
The Syrian currency’s value has tumbled from around 50 pounds per US dollar in late 2011 to just over 13,000 pounds per dollar on Monday, according to LSEG and central bank data.
The World Bank in a report in spring 2024 estimated that annual inflation jumped nearly 100 percent year-on-year last year.
The central bank is also looking to restructure state-owned banks and to introduce regulations for money exchange and transfer shops that have become a key source of hard currency, said Sabreen, who most recently oversaw the banking sector.
Assad’s government heavily restricted the use of foreign currency, with many Syrians scared of even uttering the word “dollar.”
The new administration of de facto leader Ahmed Al-Sharaa abolished such restrictions and now locals wave wads of banknotes on streets and hawk cash from the backs of cars, including one parked outside the central bank’s entrance.
To help stabilize the country and improve basic services, the US last week allowed sanctions exemptions for humanitarian aid, the energy sector and sending remittances to Syria, although it reiterated the central bank itself remained subject to sanctions.
Sabreen said allowing personal transfers from Syrians abroad was a positive step and hoped sanctions would be fully lifted so banks could link back up to the global financial system.
Syria’s new central bank chief vows to boost bank independence post Assad
https://arab.news/92a9q
Syria’s new central bank chief vows to boost bank independence post Assad
- Central bank is preparing draft law to boost independence, review of FX, gold reserves is under way
- Governor says wants avoid printing money due to inflation impact
UNRWA chief says cash flow crisis may force him into ‘unprecedented decision’
- Philippe Lazzarini said the UNRWA faced a $200 million deficit
- “Without additional funding I will soon have to take an unprecedented decision affecting our services to Palestinian refugees“
GENEVA: The head of the UN Palestinian refugee agency said on Tuesday he may have to take an “unprecedented decision” about the services it provides if funding is not found soon to ease a cash flow crisis.
Philippe Lazzarini said the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) faced a $200 million deficit.
“Cash flow is managed on a weekly basis,” he told reporters in Berlin. “Without additional funding I will soon have to take an unprecedented decision affecting our services to Palestinian refugees.”
Lazzarini gave no further details of what that decision might entail.
The United States was UNRWA’s biggest donor but President Donald Trump announced broad cuts in foreign aid, including to UNRWA, earlier this year.
Other Western governments’ aid budgets are also under pressure following calls by Trump for more spending on defense as Russia’s war in Ukraine drags on.
UNRWA provides aid, health and education services to millions in the Palestinian territories and neighboring Arab countries of Syria, Lebanon and Jordan.
Lazzarini said that two weeks ago he had been about to suspend 10,000-15,000 UNRWA staff in the region because of the cash flow crisis but an advance contribution from a donor had given the agency respite for the next two months.
“Just to process the payroll of our staff we need $60 million a month. We have no visibility anymore beyond September,” he added.
United Nations Secretary-General Antonio Guterres has requested a strategic assessment of the impact of the UNRWA mandate and will propose how the right of Palestinian refugees can be protected, Lazzarini said.
Israel has banned UNRWA from operating on its territory, accusing it of employing members of Palestinian militant group Hamas who took part in the October 2023 attacks on Israel that led to the war in Gaza.
UNRWA said as the ban went into effect this year that operations in the Gaza Strip and West Bank would also suffer.
The UN has said it will investigate all accusations made by Israel and asked Israel for evidence, which it says has not been forthcoming. Lazzarini has said that UNRWA has been the target of a disinformation campaign.
Emirati FM reviews regional crisis with Azerbaijani counterpart
- Ministers discussed latest developments in the Middle East and their impact on regional security
LONDON: UAE Foreign Minister Sheikh Abdullah bin Zayed Al-Nahyan discussed several regional issues with his Azerbaijani counterpart, Jeyhun Bayramov, during a phone call on Tuesday.
The ministers discussed the latest developments in the Middle East and their impact on regional peace and security. Azerbaijan shares part of its southern border with Iran, which has been locked in conflict with Israel since June 13, before a ceasefire was announced on Tuesday.
Sheikh Abdullah and Bayramov said that enhancing diplomacy and dialogue is crucial for tackling the crisis, and fostering the foundations of enduring security in the region and beyond, the Emirates News Agency reported.
Both parties also discussed opportunities to enhance collaboration across various sectors and strengthen cooperation between Abu Dhabi and Baku, WAM added.
Trump says Israel-Iran ceasefire in effect after deal initially faltered
- Israel earlier accused Iran of launching missiles into its airspace after truce was supposed to take effect
- Trump: “All planes will turn around and head home, while doing friendly ‘Plane Wave’ to Iran. Nobody will be hurt”
BEERSHEBA, Israel: US President Donald Trump said a ceasefire between Iran and Israel was in effect Tuesday after the deal initially faltered and the American leader expressed deep frustration with both sides.
Israel had earlier accused Iran of launching missiles into its airspace after the truce was supposed to take effect and the Israeli finance minister vowed “Tehran will tremble.”
Iran’s military denied firing on Israel, state media reported — but explosions boomed and sirens sounded across northern Israel midmorning, and an Israeli military official said two Iranian missiles were intercepted.
Trump told reporters at the White House before departing for a NATO summit that in his view, both sides had violated the nascent agreement. He had particularly strong words for Israel, a close ally, while suggesting Iran may have fired on the country by mistake.
But later he said the deal was saved.
“ISRAEL is not going to attack Iran. All planes will turn around and head home, while doing a friendly “Plane Wave” to Iran. Nobody will be hurt, the Ceasefire is in effect!” Trump said in his Truth Social post.
Indeed, Israeli Prime Minister Benjamin Netanyahu’s office said he held off on tougher strike against Iran after speaking to Trump.
The conflict, now in its 12th day, began with Israel targeting Iranian nuclear and military sites, saying it could not allow Tehran to develop atomic weapons — and that it feared the Islamic Republic was close. Iran has long maintained that its program is peaceful.
Many worried the war might widen after the US joined the attacks by dropping bunker-buster bombs over the weekend and Israel expanded the kinds of targets it was hitting.
But after Tehran launched a limited retaliatory strike on a US military base in Qatar on Monday, Trump announced the ceasefire.
Israel accuses Iran of violating the truce. Iran denies that
The deal got off to a rocky start.
An Israeli military official who spoke on the condition of anonymity in line with military regulations said Iran launched two missiles at Israel hours into the tenuous ceasefire. Both were intercepted, the official said.
Iranian state television reported that the military denied firing missiles after the start of the ceasefire — while accusing Israel of conducting strikes.
As Trump spoke to reporters at the White House before departing for the NATO summit, he expressed disappointment with both sides.
Iran “violated it but Israel violated it too,” Trump said. ”I’m not happy with Israel.”
Trump’s frustration was palpable, using an expletive to hammer home his point.
“We basically have two countries that have been fighting so long and so hard that they don’t know what the f— — they’re doing,” he said.
Later, however, he announced that Israel had backed off its threat to attack Tehran and would turn its jets around.
Netanyahu’s office said Israel struck an Iranian radar in response to the Iranian missile attack early Tuesday — but held off on something bigger.
“Following President Trump’s conversation with Prime Minister Netanyahu, Israel refrained from additional attacks,” Netanyahu’s office said.
Breakthrough announced after hostilities spread
Netanyahu said Israel had agreed to a bilateral ceasefire with Iran, in coordination with Trump, after the country achieved all of its war goals, including removing the threat of Iran’s nuclear and ballistic missile programs.
Iranian Foreign Minister Abbas Araghchi said that his country would not fire at Israel if it was not fired upon, but that a “final decision on the cessation of our military operations will be made later.”
It’s unclear what role Ayatollah Ali Khamenei, Iran’s leader, played in the talks. He said earlier on social media that he would not surrender.
Trump said Tuesday that he wasn’t seeking regime change in Iran, two days after first floating the idea.
“Regime change takes chaos,” Trump told reporters on Air Force One.
Over the weekend, he mused on his social media account that “if the current Iranian Regime is unable to MAKE IRAN GREAT AGAIN, why wouldn’t there be a Regime change???”
The ceasefire came after hostilities spread further across the region.
Israel’s military said Iran launched 20 missiles toward Israel before the ceasefire began on Tuesday morning. Police said they damaged at least three densely packed residential buildings in the city of Beersheba. First responders said they retrieved four bodies from one building and were searching for more. Earlier, the Fire and Rescue service said five bodies were found before revising the number downward. At least 20 people were injured.
Outside, the shells of burned out cars littered the streets. Broken glass and rubble covered the area. Police said some people were injured while inside their apartments’ reinforced safe rooms, which are meant to withstand rockets but not direct hits from ballistic missiles.
Iran launched a limited missile attack Monday on a US military base in Qatar, retaliating for earlier American bombing of its nuclear sites. The US was warned by Iran in advance, and there were no casualties.
Drones attacked military bases in Iraq overnight, including some housing US troops, the Iraqi army and a US military official said Tuesday.
A senior US military official, who spoke on condition of anonymity because he was not authorized to comment publicly, said US forces had shot down drones attacking Ain Assad in the desert in western Iraq and at a base next to the Baghdad airport, while another one crashed.
No casualties were reported and no group claimed responsibility for the attacks in Iraq. Some Iran-backed Iraqi militias had previously threatened to target US bases if the US attacked Iran.
Conflict has killed hundreds
In Israel, at least 28 people have been killed and more than 1,000 wounded in the war. Israeli strikes on Iran have killed at least 974 people and wounded 3,458 others, according to the Washington-based group Human Rights Activists.
The group, which has provided detailed casualty figures from Iranian unrest, said of those killed, it identified 387 civilians and 268 security force personnel.
The US has evacuated some 250 American citizens and their immediate family members from Israel by government, military and charter flights that began over the weekend, a State Department official said.
There are roughly 700,000 American citizens, most of them dual US-Israeli citizens, believed to be in Israel.
Shadowy extremist group claims Damascus church attack
- Saraya Ansar Al-Sunna said a group operative “blew up the Saint Elias church in the Dwelaa neighborhood of Damascus“
- It came after unspecified “provocation“
BEIRUT: A little-known Sunni Muslim extremist group on Tuesday claimed responsibility for a suicide attack on a Damascus church over the weekend that authorities have blamed on the Daesh group.
Sunday’s attack killed 25 and wounded dozens of others, striking terror into the Syrian Arab Republic’s Christian community and other minorities.
A statement from Saraya Ansar Al-Sunna said a group operative “blew up the Saint Elias church in the Dwelaa neighborhood of Damascus,” saying it came after unspecified “provocation.”
The Islamist authorities who took power after ousting longtime ruler Bashar Assad in December had quickly blamed the attack on Daesh and announced several arrests on Monday in a security operation against Daesh-affiliated cells.
But the Saraya Ansar Al-Sunna statement on messaging app Telegram, where it counts several hundred followers, said the government’s version of events was “untrue, fabricated.”
The group, which was formed after Assad’s ouster, vowed that “what is coming will not give you respite” warning that “our soldiers... are fully prepared.”
In March, a dispute took place in front of the Saint Elias church, as residents expressed opposition to Islamic chants being played on loudspeakers from a car.
Sunday’s attack was the first suicide bombing in a church in Syria since the country’s civil war erupted in 2011, according to a Syrian monitor.
It followed sectarian violence in recent months including massacres of members of the Alawite sect to which Assad belongs and clashes with Druze fighters, with security one of the new authorities’ greatest challenges.
The bloodshed has raised concerns about the government’s ability to control radical fighters, after Islamist group Hayat Tahrir Al-Sham (HTS) led the offensive that ousted Assad.
HTS was once affiliated with Al-Qaeda before breaking ties in 2016.
Aymenn Jawad Al-Tamimi, a Syria-based analyst and researcher, said Saraya Ansar Al-Sunna could be “a pro-Daesh splinter originating primarily from defectors from HTS... and other factions but currently operating independently of IS.”
He also said it could be “just a Daesh front group.”
Citing a Saraya source, Tamimi said a disillusioned former HTS functionary heads the group, whose leadership includes a former member of Hurras Al-Din, the Syrian Al-Qaeda affiliate which announced in January it was dissolving, upon the orders of the new government.
The monitor said Saraya Ansar Al-Sunna had previously threatened to target Alawites and had carried out an attack in Hama province earlier this year.
The group is accused of involvement in the sectarian massacres in March that the monitor alleged to have killed more than 1,700 people, mostly Alawite civilians.
