Lebanon’s c. bank transition: Task cut out for Mansouri after Salameh’s departure

Lebanon’s c. bank transition: Task cut out for Mansouri after Salameh’s departure

Never has so much ink been spilled on the departure of a high-ranking official than that of the governor of the central bank of Lebanon (Banque du Liban or BDL).

Riad Salameh’s 30-year tenure ended on Monday. With two arrest warrants and a subpoena from Interpol and multiple judges in Lebanon, Salameh is leaving behind a house in serious disarray: The Lebanese pound or lira having lost 98 percent of its value, inflation being in triple-digits, imports now accounting for more than 90 percent of the country’s GDP and the central bank having lost two-thirds of its foreign exchange (FX) reserves.

For all the latest headlines follow our Google News channel online or via the app.

According to an IMF statement, inflation in the country accelerated to 270 percent y-o-y in April 2023. The fiscal deficit is estimated to have widened to 5 percent of GDP in 2022 due to collapsing revenues.

Moreover, the current account deficit is estimated to have widened to almost 30 percent of GDP due to surging imports. Meanwhile, foreign direct investment (FDI) has remained depressed, as have been other financial inflows, the IMF statement added.

All eyes on Wassim Mansouri

In Beirut, all eyes are now on Wassim Mansouri, the first