The recent upheaval following the potential collapse of Bashar al-Assad’s regime in Syria has led to widespread chaos, yet the nation’s central bank’s gold reserves remain intactCurrently, the Syrian Central Bank holds nearly 26 tons of gold, the same amount it had when the Syrian civil war erupted in 2011. This gold now serves as the last line of defense for the country’s currency, especially as cash reserves dwindle to alarming levels.

According to sources familiar with the situation, despite the turmoil in the country, the central bank's gold reserves have not been affectedThe World Gold Council reported that as of June 2011, the Syrian Central Bank's gold reserves were approximately 25.8 tonsAt today’s market prices, this gold is valued at around $2.2 billionIn stark contrast, the bank's foreign currency reserves are reported to be a mere $200 million, with some insiders indicating that the total dollar reserves may only be several hundred million.

The erosion of foreign currency reserves is striking when compared to pre-war levels

Data from the International Monetary Fund (IMF) indicates that by the end of 2011, Syria's foreign exchange reserves stood at $14 billion, down from an estimated $18.5 billion in 2010. Former and current Syrian officials have noted that the Assad regime depleted much of the foreign currency reserves to fund essential imports such as food and fuel, as well as military expenses.

Since the regime’s violent crackdown on pro-democracy protests in 2011—protests that escalated into a full-blown civil war—Syria has ceased sharing financial information with the IMF, the World Bank, and other international organizationsThis lack of transparency has further complicated the country’s financial situation, as the government struggles to maintain its economic stability amidst ongoing conflict.

Following Assad’s flight to Russia on December 8, a new government led by opposition forces is currently assessing the nation’s assets

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This transition of power has introduced a myriad of uncertainties regarding the future economic policies and governance of SyriaSources revealed that members of the new government inspected the central bank’s vault last weekAfter the opposition’s rapid capture of Damascus, which ended the Assad family's over 50-year rule, the new government, led by Hayat Tahrir al-Sham—once an affiliate of Al-Qaeda but now disassociated—quickly established control over state institutions.

Reports indicate that looters briefly breached some areas of the Syrian Central Bank, taking Syrian pounds but failing to penetrate the main vaultThis vault is said to be explosion-proof and requires three keys held by different individuals, along with a combination code, to accessThe new government has stated that some of the stolen funds have been returned, although the overall security situation remains precarious.

Located in a spacious white building in the center of Damascus, the central bank reopened fully on Sunday, coinciding with the start of Syria’s workweek

The bank was reportedly bustling with employees and citizens exchanging dollars, while others carried bags full of Syrian poundsThe reopening signifies a critical step towards restoring some level of normalcy amid the chaos, but the challenges ahead are substantial.

A source noted that aside from the shortage of dollar reserves, the Syrian Central Bank still has access to hundreds of millions of Syrian pounds in reservesDuring the conflict, Kurdish fighters and other armed groups seized oil fields in eastern Syria, cutting off a major source of foreign currency income from crude oil salesConsequently, the central bank’s new foreign currency revenue has significantly decreased, leading to a further decline in economic stabilityAdditionally, the country has faced stringent Western sanctions, with the U.Simposing sanctions on the Syrian Central Bank and blacklisting several of its governors.

Despite these challenges, insiders reveal that Syria has not sold off its gold reserves

To maintain adequate backing for the circulating Syrian pound, the gold reserves have remained untouchedThe national currency has depreciated sharply, plummeting from approximately 50 Syrian pounds per dollar before the war to around 12,500 pounds todayThis drastic devaluation has exacerbated the economic crisis, making it increasingly difficult for ordinary citizens to afford basic necessities.

The new government in Syria has called for the lifting of international sanctions to revitalize the economy, rebuild the war-torn nation, and encourage the return of millions of Syrian refugeesHowever, U.Sand European officials have stated that they will observe the formation of the new Islamic leadership in Syria before deciding on further actionsThe international community remains skeptical about the new government’s intentions and capabilities, particularly given its ties to extremist groups in the past.

John Mearsheimer, a political scientist at the University of Chicago, commented on Saturday that it is unlikely for Damascus to quickly establish a cohesive government capable of controlling the entire country

He acknowledged the unpredictable nature of the situation, stating that significant chaos is expected in Syria for the foreseeable futureThe multitude of uncertainties facing Syria complicates any immediate prospects for stability in the region.

In summary, while the potential collapse of the Assad regime has thrown Syria into turmoil, the integrity of the central bank's gold reserves has provided a crucial buffer against economic collapseAs the new government navigates this chaotic landscape, the interplay between gold reserves, currency stability, and international relations will be pivotal in shaping Syria’s futureThe road ahead remains fraught with challenges, and the need for a cohesive strategy to restore economic stability is more pressing than ever.

The future of Syria will largely depend on the new government's ability to establish legitimacy and effectively manage the economy while addressing the humanitarian needs of its citizens