Syria and Iran to start use local currencies and a joint Bank to start working in 2024

The Central Bank of Syria has approved the idea of ​​dealing in local currencies with Iran, with the aim of facilitating commercial and financial operations, coordinating electronic payment systems to facilitate trade and tourism, and bypassing the use of the US dollar and the Euro in financial transactions between the two countries.

According to the head of the Joint Syrian-Iranian Chamber of Commerce, Fahd Darwish, revealed an understanding on Iranian offers to facilitate commercial and tourism operations between the two countries.

He added that there is an offer from an Iranian company to participate in launching a private bank in Syria soon, and it’s expected that it will begin operating at the beginning of next year.

It’s expected that this bank will play a major role in facilitating financial transactions in local currencies and neutralizing the negative effects of Western economic and financial sanctions imposed on Syria and Iran, which contributes to strengthening economic ties and facilitating financial operations and the balance of payments between the two countries.

In this context, the Syrian Prime Minister, Hussein Arnous, intends to visit Tehran with a ministerial delegation to participate in the meetings of the Syrian-Iranian joint supreme committee.

It’s expected that several cooperation agreements in the fields of trade and banking between the two countries will be signed during these meetings.

The head of the Syrian-Iranian Chamber of Commerce indicated that there is a committee that will undertake the study of reducing intra-regional customs duties, and that a draft agreement on transactions in local currencies, barter and transit is being studied.

Negotiations were completed on identifying trade tariffs for more than 88 commodities.

Regarding Tehran’s goals of investing in the Syrian banking sector, establishing an Iranian bank in Syria is an attempt to close Iranian investments in Syria so that they cannot be monitored by state institutions, and thus cover up Tehran’s activities, and establishing an Iranian bank in Syria helps facilitate the entry and exit of Iranian funds, and thus develops Tehran’s role in the country.

According to experts, as the Joint bank starts, it will speed up the establishment of local companies, with Joint Syrian-Iranian, or even individually.

These local companies, will get loans, and eventually this will help increases Iran’s influence in Syria even more, however, the Syrian economy itself might be negatively affected, because Iran can pump local currency in the Syrian market, and obtain foreign exchange instead, and that will keep inflation in highest rates, and the lack of hard currency in the market.