Central Bank of Syria executes first letter of credit in 14 years for oil deal

The Central Bank of Syria has announced the execution of its first letter of credit in 14 years to finance an oil products import deal between the Syrian Petroleum Company and Saudi Aramco. The transaction was coordinated with a major American bank, though the identity of the institution was not disclosed.

This banking tool provides the necessary guarantees to implement the deal and establishes a mechanism for financing and settling trade related to oil supplies. The Central Bank stated that this step opens a new path for securing oil supplies to Syria through direct commercial and banking arrangements.

This development follows recent efforts by the Central Bank of Syria to expand cooperation with regional and international banks to rebuild the regulatory and technical infrastructure of the sector following years of isolation and sanctions. Earlier in October, a delegation from the Central Bank of Syria, led by Governor Safwat Raslan, met with the U.S. Federal Reserve in New York to discuss practical banking relationship files, including the use of the Syrian Central Bank's accounts.