The Central Bank of Türkiye and the Central Bank of Syria have signed an agreement allowing the Syrian central bank to open a Turkish lira deposit account at its Turkish counterpart, Al Ekhbariya reported on July 29. In practical terms, the account will enable Syria to hold reserves in Turkish lira and facilitate financial transactions between the two countries.

Although the technical details have not been disclosed, the move is expected to streamline payments, ease financial transactions, and support bilateral trade and investment. The agreement forms part of a broader economic rapprochement between Ankara and Damascus. It follows a meeting in the Syrian capital between Syrian Foreign Minister Asaad Hassan al-Shaibani, Central Bank of Türkiye Governor Fatih Karahan, and Syrian Central Bank Governor Muhammad Safwat Raslan, according to the state news agency SANA.

Türkiye Expands Its Influence in Syria

The talks focused on strengthening banking cooperation, improving payment settlement mechanisms, and enhancing coordination between the two countries’ financial institutions. However, Ankara has not clarified whether the agreement could pave the way for wider use of the Turkish lira in bilateral trade or the creation of new cross-border payment systems.

The agreement reflects a broader normalization of relations between Ankara and Damascus since the fall of Bashar al-Assad in December 2024. As one of the main backers of Syria’s new transitional authorities, Türkiye has stepped up its involvement in reconstruction projects spanning transport, energy, and infrastructure, while encouraging Turkish companies to invest across northern Syria.

On the security front, Türkiye continues to maintain a significant military presence in northern Syria and coordinates closely with the new authorities against Kurdish armed groups that Ankara considers a threat to its border security.

Ankara is also playing a key role in rehabilitating border crossings, restoring road and electricity networks, and expanding cross-border trade. The opening of the Turkish lira deposit account marks another step in deepening Türkiye’s economic and strategic influence in Syria, further cementing its position as one of the new government’s most important partners.

Sources: SANA / Al Ekhbariya