Syria Rejoins International Payment System SWIFT, Signaling Economic Recovery
Syria to Re-activate Swift Access Within Few Weeks
In a significant stride towards economic recovery, Syria has been reconnected to the SWIFT (Society for Worldwide Interbank Financial Telecommunication) payment system as of July 2025 [2][3]. This development follows the removal of most U.S. sanctions, enabling Syria to re-engage in formal international trade, remittances, and financial flows.
Economic and Foreign Trade Implications
The reconnection to SWIFT holds several important implications for Syria's economy and foreign trade:
Economic Implications
- Revitalising Formal Financial Channels: Participation in SWIFT allows Syria to partake in legitimate international financial transactions, reducing reliance on illicit channels and aiding in the fight against hyperinflation [2][3].
- Access to International Trade: This facilitates the import and export of goods and services, stimulating economic recovery by providing access to global markets and encouraging foreign investment [3].
- Improved Liquidity: The removal of sanctions and SWIFT participation can enhance liquidity by enabling Syria to receive remittances and international aid more efficiently [2][3].
Foreign Trade Implications
- Regional Integration: The easing of sanctions and renewed SWIFT access is part of a broader effort by Arab countries to reintegrate Syria into regional economic and financial systems [2][3].
- Investment and Aid: The removal of U.S. sanctions is expected to attract international investment and aid flows, which were previously hindered by the sanctions regime [4].
- Infrastructure Development: With access to international financial channels, Syria can more effectively pursue infrastructure projects, such as the $800 million deal to develop Tartus Port with DP World [2][3].
Challenges Ahead
Despite these positive developments, Syria faces significant challenges, including the need for credible and transparent domestic reforms to ensure long-term economic stability [2][3]. A comprehensive IMF program and support from regional financial institutions are seen as crucial for executing these reforms and sustaining economic growth [3].
The removal of sanctions will simplify international trade, reduce import costs, and facilitate the export of goods from Syria. This reconnection to SWIFT marks a crucial step in Syria's economic recovery and regional reintegration.
- In light of Syria's reconnection to SWIFT, significant improvements are anticipated in Syria's business sector, as the country can now engage in formal international trade, remittances, and financial flows, which may lead to increased investment in domestic businesses.
- The revitalization of finance in Syria, as a result of its reconnection to SWIFT, may potentially have broader impacts on the nation's politics and general news, as the increased flow of funds could lead to regional political developments and overall economic stability, thus attracting international attention.
