Jordanian Banks Move Toward Syria Trade Finance

Banking relations between Syria and Jordan are undergoing a gradual shift as restrictions and sanctions on Syria ease, with signs of an expanding role for Jordanian banks in transfers and trade finance. Observers say this expansion could open a practical path toward reconnecting the Syrian banking sector with the regional financial system.

New Transfer Channels

Dr. Abdulrahman Mohammed told Al Watan that the most significant contribution of Jordanian banks lies in providing practical settlement and correspondent banking channels. He noted the return of MoneyGram services between Jordanian and Syrian banks through one Jordanian bank, alongside growing transfers in Jordanian dinars and the processing of payments in Saudi riyals and UAE dirhams.

A Role in Trade Finance

According to Mohammed, Jordanian banks can act as correspondent intermediaries in trade finance, particularly through:

• Letters of credit
• Documentary collection

This gives Syrian importers wider options when dealing with foreign suppliers.

Lower Cost, Higher Credibility

Mohammed said formal banking channels could reduce the transfer costs currently borne by businesspeople through informal channels. He added that these channels also enable trade finance and strengthen the legal and banking credibility of contracts, reducing transaction risks and increasing capacity for expansion.

A Bridge, Not Full Integration

Mohammed described Syrian-Jordanian relations as a "necessary initial bridge" in Syria's path back to the Arab and international banking network, stressing that this does not amount to full financial integration. He said expanding these relations requires completing anti-money laundering and counter-terrorism financing requirements, rebuilding the correspondent banking network, and developing the Syrian banking sector.

He noted that the SWIFT system represents only a communication channel, while the actual transfer of funds requires real correspondent accounts at banks willing to deal with Syria. He added that sustainability requires moving from managing isolation risks to financing production, trade and Syria's rebuilding.

Mohammed concluded that Jordanian banking cooperation could, in the coming period, affect the speed and cost of transactions, but that full return to the international banking network remains tied to political, security and regulatory factors beyond banking performance alone.