Syria Set to Rejoin SWIFT International Payment System

After a gruelling 14 years of war, turmoil and devastation, Syria has finally emerged from under the thumb of Dictator President Bashar al-Assad, released from sanctions that handicapped the nation for nearly a decade and a half.

From the middle of last month, the US, UK and European Union began announcing the easing of political and economic restrictions on the war-torn nation, with coincidental statements on efforts that will be made to help ease the Syrian people into a new era of economic empowerment.

The effects that this will have on the nation’s economic power, resilience and independence are insurmountable, but one of the most significant changes is that Syria has been granted readmission and reconnection to SWIFT, the international payment system that the country was excluded from as a result of a plethora of sanctions imposed on it during the regime of al-Assad.

Syria has long been subject to undemocratic, tyrannical rulers, with Washington referring to the Middle Eastern country and its leadership as a “state sponsor of terrorism” in 1979 under the rule of Hafez al-Assad. As such, Syria has faced restrictions at the hands of US presidents for nearly four decades – most notably, President Jimmy Carter, President Ronald Reagan and President George W. Bush – but it was in 2011 that the most harsh global sanctions were imposed, beginning the 14 year period of isolation under Bashar al-Assad that eventually came to an end in 2025.

Thus, Syria’s invitation to reconnect to SWIFT is a massive milestone in the country’s political and economic history, finally allowing an opportunity to join the world in the global economy.

 

 

What Is SWIFT?

 

SWIFT, the Society for Worldwide Interbank Financial Telecommunication, is a global network that allows financial institutions all over the world to exchange information and instructions relating to financial transactions securely.

The cooperative was established in 1973, and essentially, it provides banks with a messaging platform that can be used by banks, payment service providers as well as other financial institutions to send standardised transaction details. This includes payment orders, fund transfers and trade settlements too.

SWIFT makes use of what they call SWIFT codes – that is, standardised codes  or Bank Identifier Codes (BICs) in order to make sure that messages are sent to the intended institutions, thus maintaining accuracy and efficiency across borders – a tremendous feat of technology.

One of the most significant benefits of SWIFT is the fact that not only is it safe and secure, it’s also fast. Transactions are submitted pretty much instantly, and they’re also encrypted, meaning that the senstiive financial data that’s being transferred is protected from unauthorised access.

SWIFT operates in over 200 countries, and due to its efficiency and success, it’s essentially become the backbone of the global financial system. It allow for seamless cross-border transactions, facilitating international trade and investment. Now, it’s important to note that SWIFT itself doesn’t actually handle the transfer of funds, but what it does do is play a crucial role in enabling the underlying financial institutions to execute payments and settlements in a way that’s coordinated, allowing for the stability and liquidity of global financial markets.

Why Is Syria’s Reconnection To SWIFT Significant? 

 

Being part of the SWIFT global landscape is a big deal – in fact, in the mdoer era, it’s become an essential part of enabling countries to engage in global financial transactions efficiently.

Unfortunately, some countries are are banned or excluded from SWIFT as a result of international sanctions that are imposed by internaitonal organisations, and in Syria’s case, this was the case with the United States, The United Kingdom and the Europenan Union as part of an effort to exert economic pressure on the dictatorial regime at the time to address human rights abuses and violations of international law.

Ultimately, Syria’s exclusion from SWIFT (which was imposed in 2012) following the escalation of the civil war that started in 2011 severely hampered the country’s ability to conduct global trade, access foreign currency and attract investment. For all intents and purposes, it let to Syria from being isolated from the international financial system, exacerbating its economic crisis even further and seveerly limiting its options for recovery. The idea was to put the Syrian government under pressure to change its behaviour, and finally, after 14 horrific year sof civil war, the regime of el-Assad has come to an end, thus leading to international powers promising to reinstate Syria into SWIFT.

This is no small change for the war-torn country – rejoining SWFIT is absolutely crucial for Syria’s economic rebuilding, as it will help restore the country’s access to global financial systems and facilitates much-needed international trade and investment.

For many, this shift is an indicator that Syria may hold a wealth of opportunity for new businesses and investors alike – an economic landscape that’s been relatively untouched by international hands.

Specific dates have not yet been set for Syria’s reconnection to SWIFT – the central bank governor has vaguely mentioned that’ll be “in a matter of weeks” – but regardless of the technicalities, the expectation is enough for major changes to start happening and big moves to be made by businesses and investors alike.