After a 30-year tenure, Riad Salameh left on Monday his post as the Central Bank Governor amid an unprecedented socioeconomic crisis plaguing Lebanon.
Salameh was appointed in 1993 with the advent of the late prime minister Rafik Hariri who established the rentier economic policy funded by huge debts. It is worth noting that Salameh, the fifth governor of the central bank founded in 1964, served four terms before his departure.
His First Deputy Wassim Mansouri announced, in a press conference, he would assume the command with major changes in the financial and monetary policy.
Mansouri stressed that the assets of the Central Bank are limited and that it should stop funding the state.
“The Central Council of the Central Bank issued a decision in 2021 that prohibits any tampering with the mandatory reserves,” Mansouri told the news conference.
“We have discovered that the political (ruling) class has no intention to make reforms,” he continued.
“Our position was unwavering and clear; the reasons that pushed the government to ask the Central Bank for money are absolutely unjustified. This draining must end,” Mansouri underlined.
“The Central Bank’s assets are limited. Therefore, we must stop funding the state,” he said.
“We are ready to be by the lawmakers’ side to provide them with figures and information,” he added, calling for legalizing the collaboration between the government, the parliament, and the Central Bank.
“I will not sign on any expenditure for financing the government if it contravenes with my principles or the relevant legal framework,” he stressed.
“Spending from the Central Bank’s mandatory reserves to finance the government should be allowed by a law and the government should pay back the loan,” he explained.
He went on saying that the sought legislation should be temporary and it should allow the payment of the public sector’s wages in US dollars at the Sayrafa platform rate.
Widely viewed as the linchpin of the financial system until it imploded in 2019, Salameh saw his standing crumble as the meltdown impoverished many Lebanese and froze most savers out of their deposits in the once sprawling banking sector.
His image was further tarnished as one European country after another began investigating whether he abused his powers to embezzle a fortune of Lebanese public money.
Salameh has denied wrongdoing, and told Reuters days before his departure that he had “worked according to the law and respected the legal rights of others” during his tenure.
In May, French and German authorities issued warrants for his arrest. Interpol Red Notices declared him wanted by both countries. The one issued at the request of France cites charges including organized money laundering. The one issued at Germany’s request also cites a charge of money laundering.
Source: Al-Manar English Website and other websites
