DAMASCUS: Syria’s new central bank governor, Maysaa Sabreen, said she wants to boost the institution’s independence over monetary policy decisions, in what would be a sea change from the heavy control exerted under the Assad regime.
Sabreen, previously the Central Bank of Syria’s number two, took over in a caretaker role from former governor Mohammed Issam Hazime late last year.
She is a rare example of a former top state employee promoted after Syria’s new Islamic rulers’ lightning offensive led to President Bashar Assad’s fall on Dec. 8.
“The bank is working on preparing draft amendments to the bank’s law to enhance its independence, including allowing it more freedom to make decisions regarding monetary policy,” she told Reuters in her first media interview since taking office.
The changes would need the approval of Syria’s new governing authority, though the process is at this stage unclear. Sabreen gave no indication of timing.
Economists view central bank independence as critical to achieve long-term macroeconomic and financial sector stability.
While the Central Bank of Syria has always been, on paper, an independent institution, under Assad’s regime the bank’s policy decisions were de facto determined by the government.
Syria’s central bank, Sabreen added, was also looking at ways to expand Islamic banking further to bring in Syrians who avoided using traditional banking services.
“This may include giving banks that provide traditional services the option to open Islamic banking branches,” Sabreen, who has served for 20 years at the bank, told Reuters from her office in bustling central Damascus.
Islamic banking complies with sharia, or Islamic law, and bans charging interest as well as investing in prohibited businesses such as trading in alcohol, pork, arms, pornography or gambling. Islamic banking is already well established in the predominantly Muslim nation.
Limited access to international and domestic financing meant the Assad government used the central bank to finance its deficit, stoking inflation.
Sabreen said she is keen for all that to change.
“The bank wants to avoid having to print Syrian pounds because this would have an impact on inflation rates,” she said.
Asked about the size of Syria’s current foreign exchange and gold reserves, Sabreen declined to provide details, saying a balance sheet review was still underway.
Four people familiar with the situation told Reuters in December that the central bank had nearly 26 tons of gold in its vaults, worth around $2.2 billion, some $200 million in foreign currency and a large quantity of Syrian pounds.
The Central Bank of Syria and several former governors are under US sanctions imposed after former Assad’s violent suppression of protests in 2011 that spiralled into a 13-year civil war.
Sabreen said the central bank has enough money in its coffers to pay salaries for civil servants even after a 400 percent raise promised by the new administration. She did not elaborate.
Reuters reported that Qatar would help finance the boost in public sector wages, a process made possible by a US sanctions waiver from Jan. 6 that allows transactions with Syrian governing institutions.
Inflation challenge
Analysts say stabilising the currency and tackling inflation will be Sabreen’s key tasks — as well as putting the financial sector back on a sound footing.
The Syrian currency’s value has tumbled from around 50 pounds per US dollar in late 2011 to just over 13,000 pounds per dollar on Monday, according to LSEG and central bank data.
The World Bank in a report in spring 2024 estimated that annual inflation jumped nearly 100 percent year-on-year last year.
The central bank is also looking to restructure state-owned banks and to introduce regulations for money exchange and transfer shops that have become a key source of hard currency, said Sabreen, who most recently oversaw the banking sector.
Assad’s government heavily restricted the use of foreign currency, with many Syrians scared of even uttering the word “dollar.”
The new administration of de facto leader Ahmed Al-Sharaa abolished such restrictions and now locals wave wads of banknotes on streets and hawk cash from the backs of cars, including one parked outside the central bank’s entrance.
To help stabilize the country and improve basic services, the US last week allowed sanctions exemptions for humanitarian aid, the energy sector and sending remittances to Syria, although it reiterated the central bank itself remained subject to sanctions.
Sabreen said allowing personal transfers from Syrians abroad was a positive step and hoped sanctions would be fully lifted so banks could link back up to the global financial system.
Syria’s new central bank chief vows to boost bank independence post Assad
https://arab.news/92a9q
Syria’s new central bank chief vows to boost bank independence post Assad
- Central bank is preparing draft law to boost independence, review of FX, gold reserves is under way
- Governor says wants avoid printing money due to inflation impact
Sudan army denies involvement in Al-Jazira state civilian assaults
The army and the RSF have been accused of war crimes, including targeting civilians and indiscriminately shelling residential areas
PORT SUDAN: Sudan’s army denied on Tuesday any involvement in assaults against civilians in the central state of Al-Jazira, after rights groups accused it and allied militias of killing 13 people, including two children.
The Emergency Lawyers, who have been documenting human rights abuses during the 20-month war between the army and rival paramilitaries, said the attacks in Um Al-Qura in eastern Al-Jazira began last week as the army advanced through the state.
On Saturday, the military recaptured the state capital, Wad Madani, pushing out the paramilitary Rapid Support Forces, who had dominated Al-Jazira since December 2023.
The lawyers’ group on Monday accused the army and allied militias of detaining “a number of civilians, including women,” in what they described as a part of campaigns targeting ethnic and regional communities accused of collaborating with the RSF.
They said that the abuses included “extrajudicial killing... kidnapping as well as physical and psychological humiliation and torture.”
Both the army and the RSF have been accused of war crimes, including targeting civilians and indiscriminately shelling residential areas.
Though the RSF has become notorious for alleged ethnic-based violence — leading the United States last week to accuse it of genocide — reports have also emerged of civilians being targeted on the basis of ethnicity in army-controlled areas.
US special envoy for Sudan Tom Perriello on Tuesday described the attacks as “appalling.”
The army “and associated militias must immediately take action to investigate and hold those responsible for such horrors accountable,” he wrote on social media site X.
The army on Tuesday attributed the attacks to “individual violations” and pledged to hold perpetrators to account.
It also accused unnamed groups of exploiting the incidents to blame the military while ignoring what it said were “ongoing and horrific war crimes” committed by the RSF.
Villages such as Kambo Tayba — where the attacks occurred — are home to communities of Kanabi, residents of informal settlements, traditionally seasonal agriculture workers, who according to the Emergency Lawyers have faced hate speech as well as accusations of aiding the RSF.
Community advocacy group the Kanabi Congress has blamed the “massacre” on the Sudan Shield Forces, a group commanded by Abu Aqla Kaykal that has been a key part of the army’s Al-Jazira offensive.
Kaykal in October defected to the army’s side, after serving as the RSF’s Al-Jazira commander during a time when the paramilitary unleashed a litany of horrors on the agricultural state, including laying siege to entire towns.
The Sudanese doctors’ union, a pro-democracy body that has documented abuses on both sides, on Tuesday called the attacks in Um Al-Qura “blatant violations of human dignity and rights.”
“This includes attacks on civilians under the pretext of their alleged cooperation with the RSF or carrying out retaliatory actions on tribal grounds,” they said in a statement.
Since April 2023, Sudan has been devastated by a war that has pitted army chief Abdel Fattah Al-Burhan against his former deputy Mohamed Hamdan Dagalo, who commands the RSF.
The war has killed tens of thousands, uprooted more than 12 million and pushed the country to the brink of famine in what the United Nations describes as one of the world’s worst humanitarian disasters.
Blinken proposes UN role, Palestinian state path in Gaza
- “We’ve long made the point to the Israeli government that Hamas cannot be defeated by a military campaign alone,” Blinken said
- Blinken said that Gaza should be under the control of the Palestinian Authority
WASHINGTON: US Secretary of State Antony Blinken on Tuesday proposed international security forces and temporary UN leadership to stabilize post-war Gaza but said Israel in turn must agree on a pathway to a Palestinian state.
With talks in Qatar nearing a ceasefire in the devastating 15-month war, Blinken laid out his long-awaited roadmap for post-war Gaza after a defeat of Hamas — with days left before he leaves office.
Blinken acknowledged the misgivings of Israel — where Prime Minister Benjamin Netanyahu leads a far-right government and expects even stronger US support under President-elect Donald Trump — but pleaded for a new approach.
“We’ve long made the point to the Israeli government that Hamas cannot be defeated by a military campaign alone,” Blinken said at the Atlantic Council think tank in Washington.
“Without a clear alternative, a post-conflict plan and a credible political horizon for the Palestinians, Hamas — or something just as abhorrent and dangerous — will grow back,” he said.
In line with his calls since the start of the war, Blinken said that Gaza should be under the control of the Palestinian Authority — which now holds shaky, partial control of the West Bank and has been repeatedly undermined by Israel.
Acknowledging the limitations of the Palestinian Authority, Blinken said an unstated number of countries have offered to send troops and police to post-war Gaza.
He said that the “interim security mission” would include both foreign forces and “vetted Palestinian personnel.”
“We believe that the Palestinian Authority should invite international partners to help establish and run an interim administration with responsibility for key civil sectors in Gaza, like banking, water, energy, health,” Blinken said.
The Palestinian Authority would coordinate with Israel and the rest of the international community, which would be asked to provide funding.
A senior UN official would oversee the effort, which would be enshrined by a UN Security Council resolution, Blinken said.
“The interim administration would include Palestinians from Gaza and representatives from the PA selected following meaningful consultation with communities in Gaza,” Blinken said.
The interim authority “would hand over a complete responsibility to a fully reformed PA administration as soon as it’s feasible,” he said.
The post-war deal would take shape in negotiations after an initial ceasefire, which both Blinken and President Joe Biden said was on the “brink” of acceptance.
Trump has backed efforts to end the war but is also expected to ally himself firmly with Israel, to which Biden authorized billions in weapons but occasionally criticized over civilian deaths.
Netanyahu has long fought the idea of a Palestinian state, and his allies have described the renewed push for statehood as a reward for the October 7, 2023 attack, the deadliest in Israel’s history.
Blinken rejected the argument, saying: “Far from rewarding Hamas, accepting a political horizon would be the ultimate rebuke to its nihilistic agenda of death and destruction.”
Blinken, who was repeatedly interrupted by pro-Palestinian protesters, also criticized Israel over actions during the conflict.
“Israel’s government has systematically undermined the capacity and legitimacy of the only viable alternative to Hamas, the Palestinian Authority.”
Nawaf Salam to begin consultations to form Lebanese government
- Nawaf Salam: I am not one of those who exclude or marginalize anyone; rather, I advocate for unity and national partnership
- Salam: The time has come to begin a new chapter rooted in justice, security, progress and opportunities for Lebanon to be a country of free people equal in rights and duties
BEIRUT: Lebanese Prime Minister-designate Nawaf Salam will begin non-binding parliamentary consultations on Wednesday and Thursday to form his government despite Hezbollah’s concerns about being excluded and doubts over the issue of legitimacy.
Hezbollah and its ally, the Amal Movement, have consistently adopted this approach during their periods in power to obstruct anything that does not align with their political ambitions.
Both President Joseph Aoun and Salam on Tuesday sought to reassure all parties in Lebanon despite the appointment of Salam lacking any Shiite parliamentary votes for him.
According to a political observer, there are fears of “potential obstacles to forming the government and granting it parliamentary confidence under the pretext of ‘lacking legitimacy,’ even if the cabinet includes Shiite figures in ministerial positions that may not meet their approval.”
Mohammed Raad, head of Hezbollah’s parliamentary bloc, took an antagonistic stance after meeting with Aoun on Monday, stating that favoring Salam for the premiership over Najib Mikati, the incumbent caretaker prime minister supported by Hezbollah, is “an attempt by some to foster division, fragmentation, and exclusion.”
He warned: “It is our right to demand a government that upholds the national pact. We will monitor developments wisely and see their actions to expel Israel from southern Lebanon and return the prisoners.”
In response, the president, speaking before the highest Shiite religious authority in Lebanon, Sheikh Ali Al-Khatib, vice president of the Supreme Islamic Shiite Council, who visited him at the presidential palace, stressed that “no obstacles should be placed in the way of forming the government because we must seize the significant opportunities ahead of us. There is no time to waste, and we need to send positive messages abroad that Lebanon is capable of self-governance, transparent reconstruction, and building the state we all aspire to.”
Aoun emphasized that “the Shiites are not the only ones under threat; all of Lebanon is at risk. If one component is weakened, the entire country is weakened.”
He described the appointment of Salam to form the government as “the result of a democratic process that led to a certain outcome. There are additional phases to come. At times, we may have to take a step back, but the public interest remains the priority.”
Aoun said that “any attack on any part of Lebanon is an attack on all of Lebanon. We are pressing for Israeli withdrawal and the deployment of the Lebanese army in the south.”
The president continued: “Had there been a state and an army in the past, no one would have resorted to resistance.
“The current phase is different. The state bears responsibility, not just a single faction. The entire state and the Lebanese people as a whole are accountable."
He said that it is “not permissible for one group to bear the burden of this conflict (with Israel).”
Aoun recalled the position of Imam Musa Al-Sadr, who advocated for Lebanon’s neutrality in conflicts, noting that Lebanon, given its size, lacks the capacity to engage.
He addressed Sheikh Al-Khatib, saying: “You cannot distance yourselves from the teachings of Imam Al-Sadr; otherwise, you will not belong to the Supreme Islamic Shia Council or the Shiite community. Rest assured that no one will overpower anyone, no one will let anyone down, and no one will break anyone.”
Salam returned from The Hague late on Monday, shortly after being handed the responsibility of forming the government.
On Tuesday he met with the president and, for a brief period, Parliament Speaker Nabih Berri joined the meeting.
According to protocol, Salam delivered his first address to the Lebanese people from the presidential palace, stating his “commitment to the challenging task of serving Lebanon.”
Salam said: “I listened to some concerns yesterday. I am not one of those who exclude or marginalize anyone; rather, I advocate for unity and national partnership, and my hands are extended to all to initiate reforms so that no citizen feels marginalized.”
He added: “The time has come to begin a new chapter rooted in justice, security, progress and opportunities for Lebanon to be a country of free people equal in rights and duties … working to extend the authority of the state over all its territories.”
Salam emphasized the need for the government “to formulate a comprehensive program aimed at fostering a productive economy and ensuring job opportunities for future generations.”
He said: “A significant portion of our population still have their homes destroyed, as well as their institutions, and we must rebuild the villages in the Bekaa, the south and Beirut. Reconstruction is not just a promise but a commitment.”
He also underscored the importance of executing the Taif Agreement, saying: “The foundation of the long-anticipated reforms lies in addressing the provisions of the Taif Agreement that remain unfulfilled and rectifying those that have been implemented.”
Salam called for “the establishment of extensive administrative decentralization, delivering justice to the victims of the port explosion, and compensating depositors who have suffered financial losses.”
He said: “I will guarantee that no citizen experiences feelings of injustice, marginalization, or exclusion.”
Furthermore, Salam highlighted the urgent need to focus on “the complete implementation of Resolution 1701 and the terms of the ceasefire agreement, reinforcing the state’s authority across all its territories, and ensuring the withdrawal of the Israeli army from every part of Lebanon.”
The French Foreign Ministry congratulated Salam on his appointment, wishing him “every success in carrying out his mission, at this historic time for Lebanon. France very much hopes that a strong government, capable of bringing Lebanon together in all its diversity, may be formed as soon as possible to carry out the reforms essential for the recovery of Lebanon and its state, to allow the return of prosperity for the Lebanese people and the restoration of Lebanon’s security and sovereignty throughout its territory.
“The Lebanese premier will be able to count on France’s full support in its missions, to the benefit of all Lebanese people,” the ministry added.
Lebanon’s grand mufti, Sheikh Abdul Latif Derian, said that “facilitating the task of the designated prime minister to form a comprehensive national government composed of experts and qualified individuals is a national duty.”
After his meeting with Sheikh Derian, Saudi Ambassador to Lebanon Walid Al-Bukhari said: “The Kingdom will always stand by Lebanon and its people.”
He expressed his “satisfaction with the completion of the presidential elections and parliamentary consultations, which promote unity among the Lebanese people and steer Lebanon toward a renaissance both economically and developmentally, in order to pave the way for the reform process and restore the trust of the Arab and international communities.”
Meanwhile, Israeli warplanes resumed their incursions into Lebanese airspace, particularly over Beirut and the southern suburbs.
On Tuesday, the Lebanese army raided the Sadiq compound in Al-Aamroussieh after receiving reports of weapons and ammunition stored underground. But after searching the area — previously targeted by Israel — the army found no weapons or ammunition.
Jordan’s king checks largest aid convoy to Gaza Strip
- Shipment will be the 140th aid convoy sent by Amman since Israel’s war on Gaze began in late 2023
- King Abdullah commended the JHCO’ humanitarian work over the past 35 years
LONDON: King Abdullah of Jordan visited the Jordanian Hashemite Charitable Organization on Tuesday to check on the largest aid convoy that Amman is preparing to send to the Gaza Strip.
King Abdullah visited the organization’s warehouse in Zarqa City, northeast of Amman, where staff were assembling 120 trucks of food, relief, and medical aid for Gaza.
This shipment will be the 140th aid convoy sent by Amman since late 2023 when Israel launched its onslaught on Gaza.
The JHCO has delivered 73,000 tonnes of humanitarian aid and relief to Gaza, worth $212 million, benefiting at least 1.4 million Palestinians in the enclave since the start of the war, the Petra news agency reported.
King Abdullah commended the JHCO’s humanitarian work in various countries hit by war or natural disasters in the past 35 years.
Prince Rashid bin Al-Hassan, the JHCO chairman, was handed a Silver Jubilee Medal by King Abdullah to recognize the organization’s humanitarian contributions.
Bahraini king arrives in Oman for 2-day state visit
- Squadron of military aircraft escorts king’s jet to Muscat
- Omani artillery fires 21-gun salute for royal guest
LONDON: Omani Sultan Haitham bin Tariq welcomed Bahraini King Hamad bin Isa Al-Khalifa to Muscat on Tuesday.
The Bahraini royal is on a two-day state visit to Oman.
A squadron of Royal Air Force military aircraft escorted the king’s jet to Muscat’s Royal Airport.
The two leaders’ motorcade then departed to Al-Alam Palace for an official public reception, the Oman News Agency reported.
Sultan Haitham accompanied King Hamad to the Dais of Honor, where the Bahraini national anthem was played and a 21-gun salute was performed.
King Hamad is accompanied by an official delegation that includes Sheikh Rashid bin Abdullah Al-Khalifa, the minister of interior; Abdullatif bin Rashid Al-Zayani, the foreign minister; and Juma bin Ahmed Al-Kaabi, ambassador of Bahrain to Oman.
