Syria becomes first Arab state with woman central bank chief

With the appointment of Sabrin, there are now 30 central banks headed by women (out of a total of 185), up from 23 in 2023, according to a report published in April 2024 by the Official Monetary and Financial Institutions Forum.

A bulletin published by the International Monetary Fund (IMF) in August 2024 noted the appointment of two other women as heads of their respective countries' central banks: Jasmina Selimović in Bosnia and Herzegovina and Elizabeth Genia in Papua New Guinea. The proportion of central banks headed by women is now 16%.

In early 2024, the IMF urged greater gender diversity among central banks' senior positions, adding that this would lead to a diversity of thought, with improved checks and balances, contributing to greater economic and financial stability.

A 2018 report by the Bank of France found that statistics over the last 55 years show similar proportions in the committees of the West's big central banks: the US Federal Reserve (the Fed), the Bank of England (BoE) and the European Central Bank (ECB). 

Of the 130 members of the Federal Open Market Committee, only 14 (or 10%) were women. The BoE fared slightly better, with women comprising 19% of its Monetary Policy Committee since its inception in 1997. At the ECB, women have represented about 16% of the Executive Board since 1998 but only 6% of the Governing Council.

Russia's Elvira Nabiullina 

In June 2013, Putin appointed his economic advisor, Elvira Nabiullina, to head the Central Bank of Russia. It made her the first woman to head the central bank of a G8 country (a year later, in 2014, Russia was expelled from the grouping).

Nabiullina was the second woman to head Russia's central bank (Tatyana Paramonova led it in 1994-95). She quickly modernised monetary policy and brought it in line with international standards, opening the country up to investment. Capital controls imposed in 2006 were lifted, and the ruble floated in 2014. 

In 2015, Forbes magazine listed her as one of the 100 most powerful women in the world, and Euromoney named her the Central Banker of the Year. For several years, she steered a steady ship until Russia's invasion of Ukraine in 2022 changed things.

Western financial sanctions were quickly imposed. This included the freezing of $630bn in Russian assets. Nabiullina was forced to take drastic action. She pushed through restrictions on financial transfers abroad, banned foreigners from selling their stakes in Russian companies, and increased the interest rate to 20%. 

Together, these measures succeeded in controlling inflation and restoring the health of the ruble. The Wall Street Journal even offered indirect praise, describing how she had protected Russians from the impact of sanctions.

Prof. Daniela Gabor, a specialist in central banking, saw things differently, arguing that Nabiullina and all other technocrats who support Putin's military adventurism should be sent to the International Criminal Court (ICC) in The Hague. Soon, Nabiullina found herself on the US, Canadian, and British sanction lists. 

Janet Yellen

Janet Yellen was the first woman to head a G7 central bank when she was appointed to chair the Fed in 2014. Her focus was the labour market. During her tenure, the unemployment rate fell from 6.7% to 4.1%, the lowest level in 17 years. Inflation stayed below 2%, and interest rates were also favourable. 

This made housing more affordable, and by lowering the cost of starting a business, jobs were created, and consumer spending rose, which led to an economic recovery. Yellen, who went on to become US Secretary to the Treasury, is now widely seen as one of the most successful Federal Reserve chairs in recent years. 

US Vice President and 2024 presidential candidate Kamala Harris said Yellen was "the first woman in American history to lead the three most important economic positions in the federal government: the White House Council of Economic Advisers, the Fed, and the Treasury Department."

Christine Lagarde

Former International Monetary Fund (IMF) director Christine Lagarde became the first woman to lead the ECB in 2019. With 341 million people living in the Eurozone, she is no stranger to responsibility. Lagarde has headed the prestigious law firm Baker & McKenzie, been a French trade minister, and led the IMF for eight years. 

The Wall Street Journal called her one of Europe's most influential businesswomen, the Financial Times called her Europe's most important finance minister, and Time said she was one of the 100 most influential people in the world.

She was criticised for her role in granting Argentina the largest loan in IMF history ($57bn) to prop up the under-pressure government of right-wing President Mauricio Macri—an ally of Donald Trump—but was praised for her skilful management of the economic crisis triggered by the pandemic.

She set up the Emergency Pandemic Purchase Programme, which allowed the ECB to lower interest rates on public debt and make the pandemic-related deficit sustainable without wiping out public debt in accordance with the European Treaty (which strictly prohibits monetary financing of states).

Lagarde also undertook a strategic review of the ECB—the first since 2003—in which she redefined the Eurozone's inflation target at 2%, more than a point below the core inflation rate. She also engaged the ECB on climate change, again to great acclaim.

The Eastern Mediterranean 

The Eastern Mediterranean is now familiar with female central bank governors. Among the first was Israel's Karnit Flug, who succeeded Stanley Fischer after he resigned in 2013. She knew him from their time together at the IMF. Shortly after, Christalla Georghadji served as the governor of the Central Bank of Cyprus from 2014-19. At the time, she was the only female head of a central bank in the European Union. 

Another was Hafize Gaye Erkan, appointed by Turkish President Recep Tayyip Erdoğan as the first woman to head the Central Bank of Türkiye. Like others, she had extensive academic qualifications, having studied at Princeton, Harvard, and Stanford in the US and had then held a senior position at investment bank Goldman Sachs. 

She served from 2023-24, tackling both inflation and the depreciation of the Turkish lira. She gradually raised interest rates from 8.5% to 45%, improving financial credibility and investor confidence and stabilising the lira. She resigned, citing the need "to protect her family" after a newspaper alleged that a bank employee was unfairly dismissed at the behest of Erkan's father. 

A global trend

In Asia, female central bank governors include Zeti Akhtar Aziz in Malaysia and Zina Asankulova in Kyrgyzstan. In Europe, they include Georgijevka Tabakovic in Serbia and Nadezhda Ermakova in Belarus, while in Africa, Retselisitsoe Matlanyane in Lesotho, Linah Mohohlo in Botswana, and Gill Marcus in South Africa join the list. 

In South America, Mercedes Marco del Pont in Argentina, Martha Evelyn Rivera in El Salvador, Maria Elena Mondragon in Honduras, Wendy Craig in the Bahamas, and Janet Semeleer in Aruba have all led their countries' central banks. Yet female central bank governors are still in the minority.

Economist Paola Subacchi thinks men dominate central banks because these institutions operate as closed clubs with limited transparency, a strong bias towards male membership, unelected leadership, and the tacit support of governments.

In contrast, a 2018 EU Fox report examined the links between female central bank governors and inflation. It found that women were more aggressive in fighting inflation than men—contrary to the stereotype.

Hawks vs doves

Likewise, the Bank of France sought to understand whether female central bank leaders tended to prioritise the fight against inflation (making them economic 'hawks') or prioritise growth and employment (making them economic 'doves'). 

At the committee level, women were more likely to be dovish than men, but in senior leadership positions, it was inconclusive. It can depend on a nation's priorities. Lagarde said she spends "most" of her time fighting inflation, whereas former US President Barack Obama called Yellen "the champion of American workers and their families".

The bank concluded that being a hawk or a dove was less about gender than about education, experience, and political support. They may have studied at universities with a Keynesian tradition (Harvard, Yale), been born during periods of high unemployment, or serve at the discretion of political leaders for whom inflation-fighting or job creation are national priorities. Importantly, all of these contributing factors would apply equally to men and women.

For Sabrin and Syria, the list of national priorities is huge. The United Nations estimates that 90% of Syrians now live in poverty; the country's economy suffers from endemic corruption, low productivity, a lack of investment, and Western sanctions; and the oil fields that could provide much-needed revenue are currently held by Kurdish separatists. 

Sabrin's task is, therefore, arguably tougher than any of her recent female central bank counterparts, but should she wish to consult her peers for advice, she will not be short of numbers to call.