Syrian social media actively discussed a video showing President Ahmed al-Sharaa making the first electronic payment with a Visa card at a store in Old Damascus. The purchase took place a day after Syria was removed from the list of state sponsors of terrorism. Many users viewed the gesture as a symbol of the country’s return to the international financial system.
The president was accompanied on his visit by Safwat Raslan, governor of the Central Bank of Syria. He said the authorities were working to create a modern and reliable financial system that met Syrians’ expectations. According to him, the first payment made through a direct connection to Visa’s global network in central Damascus marked “a new beginning” associated with great hopes and responsibility.
Although the purchase amounted to no more than a cup of coffee, Syrians saw in it a significance far exceeding the value of the item. For many citizens, the ability to use international payment cards after more than 15 years of financial isolation had been virtually unattainable. Observers linked the move to the recent connection of Syria’s banking system to the international SWIFT network, the introduction of a single regulated exchange rate for the national currency, and measures to improve the investment climate.
In May, the Central Bank authorized licensed banks, financial institutions, and electronic payment companies to work directly with international payment networks, including Visa and Mastercard. These decisions are intended to help restore the confidence of foreign banks, attract investment, and expand domestic payment services. For many Syrians, the first card payment became a visible sign of the country’s gradual emergence from financial isolation and a source of hope for the recovery of the national economy.
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What sanctions and restrictions previously hindered Syrian banks’ connection to the international Visa, Mastercard, and SWIFT payment networks? — The main obstacle was the US and EU sanctions against Syria, including restrictions on dealings with the Central Bank of Syria, state-owned banks, and several private financial institutions. Banks also faced the threat of secondary sanctions for transactions with Syrian entities, while export controls and restrictions on dollar-denominated settlements made international transfers more difficult. Visa and Mastercard discontinued or restricted service to Syrian cards, while the disconnection of certain banks from SWIFT and enhanced compliance checks by international banks made cross-border payments extremely difficult. Even if sanctions are formally eased, restoring access will require technical checks and confirmation of compliance with anti-money-laundering requirements.
How could a single regulated exchange rate for the Syrian currency and the restoration of access to SWIFT affect inflation, prices, and citizens’ everyday banking operations? — A single exchange rate could narrow the gap between official and unofficial markets, make prices and settlements more predictable, and reduce opportunities for currency speculation. Access to SWIFT would simplify international transfers, import payments, remittances from relatives abroad, and banks’ work with foreign partners. However, this does not guarantee a rapid decline in inflation: prices could initially rise if the official rate is brought closer to a weaker market rate, while any lasting effect would depend on monetary discipline, foreign-exchange reserves, import volumes, confidence in banks, and the broader lifting of sanctions.
Full version: The Price of a Cup of Coffee… President al-Sharaa Makes the First Payment with a “Visa” Card