Al -Jazeera Net Correspondents
The Central Bank of Syria, Maysa Sabreen, submitted her resignation last Thursday, less than 3 months after her appointment to the position.
A Syrian government official and a source in the financial sector confirmed that the appointment of an alternative to Sabreen will be immediately after the completion of the formation of the new government in the coming days.
Despite the absence of the official announcement until the moment, activists on social media circulated the names of candidates to succeed Sabreen, most notably Dr. Abdel Qader Hasari, the Syrian economist who specializes in reform and public policies.
However, what are the repercussions of this sudden resignation? How can the bank’s performance be evaluated during the short period of Sabreen? What are the options offered to maintain economic stability and the price of the lira disbursement in the next stage?
Limited repercussions and resignation in the context of structuring
Syrian experts unanimously agreed that Sabreen’s resignation will not bear major negative repercussions on the Syrian economy or the exchange rate of the lira.
Syrian economist Osama Al -Qadi says that “the smooth transition between a temporary ruler and another will not have a major negative impact,” which was supported by the expert Ziad Marash, considering that the resignation comes within the framework of restructuring the bank to play its role in the next stage.
“I suggest that there are no remarkable negative effects of this resignation, as well as Mrs. Maysa has great banking experience, and I think it will be an important addition to the bank in any role coming to it.”
Performance under harsh conditions
In his evaluation of the bank’s performance during the period of Sabreen, the judge explained that the performance was in general, despite the “weak capabilities and the lack of cadres, and the scarcity of liquidity in the foreign and local currencies,” adding that the bank was “subject to a looting process by the ousted Syrian President Bashar al -Assad,” as he put it.
He pointed out that the new Syrian administration “made unremitting efforts during the first months after the liberation, to keep the bank’s role vital and effectively.”
For his part, the expert Ziyad Arbash saw that the bank “was under great pressure and did not enjoy independence or freedom of movement,” stressing that this is “natural in light of the transitional period and the imposed penalties.”
Arbash added that the bank was in the case of “managing a crisis with weak capabilities”, but he believes that it could have been activated more in the liberalization of liquidity, stimulating markets and positive intervention in the exchange rate.
Print a new currency of the 5,000 liras
The economist called on the next ruling judge to print a new 5,000 -liras as a temporary solution, explaining that this category is “the most exposed to forgery and is used in money laundering.”
He added: “Printing the currency is a necessary issue to ensure that there is sufficient liquidity in banks, and it is possible to understand with sister countries to pay costs in installments that span 3 years, or find an Arab country that covers the annual costs. This step is necessary to prevent liquidity and control of forgery.”
He also stressed the importance of institutionalizing exchange centers, and preventing the spread of cashiers in the streets, considering that this chaos creates very impressive speculation on the price of the lira.
The recommendations also included addressing European countries, especially Germany, to open a German bank in Syria, which enables the country to join the “Sepa” system, similar to the Swift system, allowing the money to transfer money between Europe and Syria easily, and this may contribute to the gradual movement of the economy.
An action plan for the Syrian central in the next stage
In turn, Arabash proposed a set of procedures that the central bank must implement, namely:
- Issuing new banknotes from categories that facilitate transactions.
- Effectively managing cash supply.
- Positive intervention in determining the exchange rate of the lira against foreign currencies.
- Determine interest rates on the lira and intervene to adjust them in a way that suits market conditions.
- Establishing policies for public and private banks that prevent harmful competition, and strengthen their role in lending within effective government control.
- Communication and cooperation with central banks in brotherly and friendly countries.
It is worth noting that Maysa Sabreen was subjected to the end of last December, governing the Central Bank of Syria, to become the first woman to hold this position in the history of the bank that extends for more than 70 years.
Muhammad Essam Hazimah, who was appointed by former President Bashar al -Assad as governor of the bank in 2021.
