On January 1, 2025, Maysaa Sabrine was appointed as the first female head of Syria's central bank, taking over from Mohammed Issam Hazime. This leadership change comes at a critical time as the Syrian economy grapples with severe challenges, including a staggering cumulative economic loss of over $440 billion since the onset of the civil war in 2011. Sabrine's immediate priorities will focus on stabilizing the Syrian pound, which has lost over 90% of its value since 2020, and curbing rampant inflation that has plagued the nation. [43b96b7d]
The Syrian pound has recently shown signs of unexpected resilience, trading at levels between 10,000 and 12,500 pounds per US dollar, a significant improvement from the rates seen in late 2024. Currency traders attribute this stability to a combination of political optimism following President Bashar al-Assad's departure and potential reforms that could lead to the lifting of international sanctions. However, analysts caution that the recovery of the pound will depend heavily on how the new leadership navigates the economic landscape. [211dd1db]
Despite the recent improvements in exchange rates, the broader economic outlook remains bleak. The Syrian economy is projected to contract by 1.5% in 2024, following a 1.2% decline in 2023. The GDP has shrunk by 54% from 2010 to 2021, and the official exchange rate has declined 270-fold against the US dollar from 2011 to 2023. Foreign currency reserves have plummeted from $18 billion in 2011 to a mere $200 million, complicating efforts to stabilize the economy. [43b96b7d]
The FATF's grey list status further complicates investment opportunities, and governance reforms are deemed essential to lift sanctions that have crippled the economy. The ratification of a new constitution has been delayed for three years, adding to the uncertainty surrounding the country's future. [43b96b7d]
In the wake of these developments, public sentiment in Syria remains cautiously optimistic yet skeptical about the potential for lasting stability. Maysaa Sabrine's leadership will be closely watched as she tackles the monumental task of revitalizing an economy that has faced unprecedented challenges over the past decade. [43b96b7d]