Lebanon central bank deputy calls for urgent replacement of departing governor

Lebanon central bank deputy calls for urgent replacement of departing governor

A deputy to Lebanon’s departing central bank governor Riad Salameh has called on the government to urgently name his successor and enact reforms, or risk further destabilising the volatile currency and worsening the country’s calamitous economic crisis.

Salameh, who is wanted in Europe over corruption allegations, is due to step down at the end of this month after three decades in charge of the Banque du Liban. Prime Minister Najib Mikati said this week that one of Salameh’s four deputies would assume his duties until a permanent bank chief was found, but it is unclear if this will happen.

“How can we, the deputy governors who are going to lead monetary policy as of August 1, be able to stabilise [the pound] in the absence of any government reforms?” Salim Chahine said in an interview. “No monetary policy . . . will succeed without supportive government policies.” 

He said it was his duty as bank deputy “to stress the necessity of appointing a new governor as soon as possible . . . I owe it to the public to share my concerns.”

The indecision over Salameh’s replacement is the latest act of the chronic dysfunction that has dragged Lebanon close to the financial abyss. The country has been led by Mikati’s caretaker