Conflicting financial decisions complicate humanitarian operations in Syria

Two official documents have revealed a contradiction between the Syrian Ministry of Foreign Affairs and the Central Bank regarding currency regulations affecting international organizations. While the Foreign Ministry temporarily permitted the use of US dollars, the Central Bank mandated exclusive use of the Syrian pound, creating operational disruptions, reducing aid efficiency, and increasing costs.

5 May, 2026 11:13

NEWSDESK

The documents highlight inconsistencies in the interim government’s policies on foreign currency transactions, directly impacting the work of international organizations and threatening to raise the cost of humanitarian programs while diminishing their effectiveness.

According to a memorandum issued by the Ministry of Foreign Affairs on April 19, 2026, international organizations operating in Syria were granted an additional six-month exemption allowing them to conduct payments and contractual settlements in US dollars. The measure aimed to ensure continuity in humanitarian and development activities and prevent disruption of ongoing projects.

In contrast, the Central Bank of Syria issued a circular on May 3, 2026, requiring banks and organizations operating in the country to pay local staff salaries exclusively in Syrian pounds, prohibiting payments in US dollars. The directive also imposed additional restrictions on contracts with local suppliers: while pricing in dollars was permitted, payments were required to be made in Syrian pounds, particularly for contracts signed after May 15, 2026.

This policy divergence reflects a clear gap between the facilitation measures announced by the Foreign Ministry and the enforcement mechanisms adopted by the Central Bank, placing international organizations under complex operational challenges related to financial compliance and contract management.

Sources within the humanitarian sector expect that this contradiction will lead to financial losses due to exchange rate differences, as well as a tangible reduction in the volume of aid delivered inside Syria, driven by rising costs and increasingly complicated payment and settlement procedures.

A-H

ANHA