Wassim Mansouri, the newly appointed interim chief of the Lebanese central bank (Banque du Liban), has called for the implementation of long-awaited reforms as he prepares to take over the role. This transition comes as Lebanon grapples with a prolonged financial crisis. Mansouri, currently the vice governor, will replace Riad Salameh, who leaves after a 30-year tenure marked by an economic collapse and allegations of corruption, which he denies.
In a news conference, Mansouri outlined plans for the central bank under his leadership. He emphasized the necessity to impose stringent restrictions on the central bank’s lending to the government, with an aim to eventually cease such funding entirely. Additionally, he mentioned the need to phase out the controversial Sayrafa exchange platform and lift the peg on the local currency, a move towards more flexible exchange rates.
Mansouri stressed his commitment to only approve government financing that is legally sound and convincing. His appointment as the interim head reflects the broader political dysfunction in Lebanon, which currently lacks a fully empowered government or president. This political deadlock has contributed to the country’s severe financial crisis, attributed to decades of mismanagement and corruption.
The International Monetary Fund (IMF) has previously noted that resistance to crucial reforms by vested interests has exacerbated the crisis. Mansouri, a trained lawyer with experience as a legal consultant, highlighted this as Lebanon’s “last chance” for reform. His proposed measures include the establishment of a capital control law, a financial restructuring law, and a new state budget within six months.
The central bank leadership in Lebanon is determined through a sectarian power-sharing system. Mansouri, a Shia Muslim, was appointed alongside three other vice governors in June 2020, despite the central bank governorship traditionally being reserved for Maronite Christians.
Former central bank chief Riad Salameh’s departure comes amid a tarnished reputation due to the financial meltdown and ongoing international investigations into alleged embezzlement of public funds. Salameh has consistently denied any wrongdoing. In May, French and German authorities issued arrest warrants for him, and he is wanted by both countries as declared in Interpol Red Notices.
Salameh, defending his tenure, claimed he worked lawfully and respected legal rights, stating he had become a scapegoat for Lebanon’s economic collapse. He attributed the responsibility for public spending to the government, not the central bank. As he leaves the position, Salameh expresses a desire to turn a new page in his life.
Catch the latest supply chain news at The Supply Chain Report. Learn more about international trade at ADAMftd.com with free tools.
#LebanonCentralBank #WassimMansouri #BanqueDuLiban #LebanonCrisis #EconomicReforms #FinancialRestructuring #IMFReforms #LebanonPolitics #CurrencyPolicy #LebanonFinancialCrisis #CapitalControlLaw #RiadSalameh #LebanonEconomy #LebanonNews #SayrafaPlatform
