Establishment & Mission of the Central Bank of Syria
The Central Bank of Syria was established by Legislative Decree No. ( 87 ) dated 28/3/1953 which included the Basic Monetary System of Syria . The Bank started its operations on the first of August 1956, with its headquarters in the city of Damascus , and 11 branches located in the provincial capitals of Syria.
(Click here for information about CBS branches in Syria)
The Central Bank of Syria , mindful of the need to monitor and facilitates this important and far reaching economic and social developments has embarked on implementing a new strategy that comprises of several new developmental plans aimed at updating the bank laws and regulations, modernizing current operating methods , by introducing advanced technologies, and utilizing the best computer systems in all bank functions and activities.
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Is to foster the stability integrity and efficiency of the nationís financial and payment systems so as to promote optimal macro economic performance. This mission has three main elements: To formulate and conduct monetary policy toward the achievement of maximum sustainable long-term growth, price stability foster that goal; To promote a safe, sound, competitive, and accessible banking system and stable financial markets through supervision and regulation of the nationís banking and financial systems, through its function as the lender of last resort, and through effective implementation of statutes designed to inform and protect the consumer; To foster the integrity, efficiency, and accessibility of the domestic currency payments and settlement systems, issue a uniform currency, and act as the fiscal agent and depository of the government. The overall objectives of Central Bank of Syria as an independent and credible institution are:
Main Functions of the Central Bank of Syria:
The main functions performed by the Bank are:
1- Issuing the national currency :
The issuing of national currency is a monopoly of the state , and exercised solely on behalf of the state by the Central Bank of Syria . The Syrian Pound is the basic unit of the Syrian currency . The Basic Monetary Law has defined the denominations in which the Syrian banknotes may be issued , as well as, the coins and their withdrawal from circulation and exchange .
2- The Central Bank is the Bankers` Bank
The Central Bank is regarded by the Basic Monetary Law as the Bankers` Bank as it rediscounts , purchases , reassigns drafts and commercial promissory notes, and grants loans and advances to finance the activities of various economic sectors , all in its capacity as lender of last resort. These operations are performed through the banks as it is prohibited to deal directly with individuals. The Central Bank , in its capacity as a bankers bank , can monitor and control the implementation of credit policy and assess its appropriateness to requirements of the national economy .
3- Issuing national public debt instruments and participating in international financial negotiations
The Central Bank of Syria issues national public debt instruments for various terms , performs all related reissue and refund operations, and, in general, all financial operations related to loans issued or guaranteed by the state. Also it participates in negotiating international payments , foreign exchange , and clearing agreements. Moreover , it enters into all related arrangements required for the implementation of such agreements.
Furthermore, the Bank participates in the negotiations of external loans entered into for the account of the state, and it represents the state in negotiations in the areas of international monetary cooperation .
4- Banks required reserves
The Central Bank of Syria may require the banks to invest their required reserves , and their special reserves in securities issued by the state or guaranteed by it, or to invest a fraction of its surplus funds and a part of their deposits in government securities .
5- Acting as the state bank, and its financial agent.
The Central Bank is empowered by the basic monetary law to act as the state bank, its cashier and financial agent inside and outside the Syrian territories in all banking , cashier, and credit transactions of the state .
6- The Central Bank of Syria also performs the following:
- Managing the Foreign Exchange Bureau for the account of the state .
- All special operations in foreign exchange, management of international reserves with a view to safeguarding them and ensuring the stability of foreign exchange rates .
- Acquires capital of financial institutions subject to special legal provisions
- All operations of facilitating the transport of currency . Also it may establish or participate in the establishment and management of clearing rooms .
- Many other functions