The Central Bank of Syria seeks to activate its indirect instruments to achieve monetary policy objectives, as well as the direct instruments used, as follows:

Direct Instruments:

  • Interest rate controls: The Central Bank of Syria determines the interest rates on deposits with operating banks to manage bank liquidity in order to achieve a balance between fund's sources and uses.
  • Credit controls: The Central Bank of Syria to establish controls for the credit granted by banks to guide credit facilities according to the priorities of growth in the economic sectors and contribute to the recruitment of sources of funds in the banking sector.

Indirect instruments:

  • Compulsory reserve: The current operational cash framework is based on the mandatory reserve policy as a banking liquidity management instrument.
  • As part of its efforts to activate other indirect monetary instruments (open market operations and existing facilities), the Central Bank of Syria is developing appropriate legislative and technical frameworks to enhance its ability to achieve the desired objectives.