The Central Bank of Syria is an independent public sector establishment operating under the guarantee of the state , and within the guidelines issued to it by the Council of Ministers . The Capital of the bank is fully subscribed by the state.
The Central Bank coordinates the activities of money and credit establishments within its authorities and general guidlines issued to it by the Council of Ministers in a way that realizes the objectives of fiscal , monetary and banking policies of the state.
The Central Bank of Syria is solely empowered to issue , for the account of the state , the paper currency , in the amounts needed to meet the requirements of national economic development and sustained growth , and to facilitate the developmental process in various economic and social sectors . The monopoly of issuing the national currency given to the Central Bank makes it the sole financial institution capable of managing monetary circulation from a material point of view.
The bank exercises control over the banking system , and ensures the proper implementation of the provisions of the Basic Monetary Law ,and related rules and regulations , and monetary and banking criteria.
Main Functions of the Central Bank of Syria:
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 .
Other Important Functions:
- 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 .
The bank is managed by the Governor who heads the Administration Committee. The Committee includes one Deputy Governor and three Executive Directors.The Governors insure the compliance with the laws and basic rules and regulations of the Bank.