Damascus, 1 March 2026 – In a pivotal step towards addressing the severe economic challenges facing the nation, the United Nations Development Programme (UNDP) and the Central Bank of Syria (CBS) have formalized a strategic partnership through a new Letter of Agreement. Signed under the umbrella of the STAF project, this collaboration aims to fortify the Bank’s institutional capacity and lay the groundwork for a resilient and transparent financial sector.

After over a decade of conflict, Syria's economic landscape is marked by profound fragility. The nation contends with deep structural damage, a severe contraction of GDP, and a dramatic decline in household incomes. Hyperinflation and currency depreciation have decimated purchasing power, while the degradation of public financial infrastructure has rendered over 40% of public bank branches non-operational. Compounding these challenges are acute liquidity shortages, weakened payment and supervisory systems, and record-low public confidence.

The evolving political context since December 2024, however, presents a renewed opportunity for transformative change. The Central Bank of Syria is poised to play a central role in steering this transition. In response, this new agreement with UNDP is designed to provide targeted technical expertise, enhance supervisory and regulatory frameworks, and upgrade operational and digital infrastructures. These interventions are strategically aligned with the CBS’s five-year reform strategy, which is dedicated to restoring monetary stability, modernizing financial oversight, and rebuilding public trust in the financial sector.

“This agreement underscores UNDP’s enduring commitment to strengthening national institutions and supporting Syria’s pursuit of a more stable and accountable financial system,” stated UNDP Syria Resident Representative a.i. Dr Mohammed Mudawi. “By collaborating closely with the Central Bank, we are working to advance evidence-based reforms that reinforce public trust and ensure that national recovery priorities are addressed through robust governance. Partnerships like this are essential for fostering a sustainable, locally-led recovery that benefits all Syrians.”

As Syria navigates its complex recovery pathway, UNDP emphasizes that economic stability is a fundamental prerequisite for improving livelihoods, protecting incomes, and enabling communities to rebuild with dignity. This agreement directly contributes to creating the necessary conditions for families and communities to thrive.

“This agreement represents another large stride Syria has made in rebuilding the foundations of trust in the country’s financial system. By strengthening governance, supervision, and institutional capacity at the Central Bank, we are reinforcing transparency and accountability, which are essential pillars for restoring stability, protecting citizens’ livelihoods, and reconnecting Syria responsibly to the international financial system in support of a resilient national recovery.” said Abdulkader Husrieh, Governor of the Central Bank of Syria.

UNDP reaffirms that strong, constructive partnerships with pivotal national institutions—chief among them the Central Bank of Syria—are indispensable for achieving a recovery that is not only sustainable and inclusive but also firmly centered on the well-being of the Syrian people.

Media contacts: 

Dima Najjar | Communications Analyst | dima.najjar@undp.org | +963 992178883