Lebanon Central Bank Deputy to Take Over From Scandal-Hit Head

Omar Tamo and Dana Khraiche
·2 min read
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(Bloomberg) -- Lebanon’s central bank first vice-governor said he will take on the top job on an interim basis as Riad Salameh ends his tenure amid a string of money-laundering allegations.

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Wassim Mansouri said in a press conference Monday he will assume governor responsibilities the next day and begin talks with the state to float the pound’s exchange rate.

Lebanon is reeling from a financial crisis labeled by the World Bank as one of the worst globally since the mid-19th century. The banking sector is facing about $70 billion in losses, the national currency lost over 90% of its value and the country defaulted on its debt in 2019 for the first time in its history.

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Banque du Liban and the government will set a mechanism to gradually unify and float the national currency without the central bank’s intervention in the market due to limited resources, Mansouri said.

Bdl has been selling dollars to individuals and companies in a bid to steady the pound’s market value and to ensure the continuity of vital imports.

Salameh is under investigation by the European Union over money-laundering allegations and has an Interpol notice against him. The former governor has repeatedly denied the charges, saying he did not abuse his power while at the helm of the central bank.

By law, the first vice governor takes over the helm of the central bank until an appointment is made. Salameh said that he won’t seek a new term and the caretaker government is yet to name a successor.

Salameh was appointed in 1993 and most of his tenure was credited with maintaining the peg and confidence in the financial sector despite repeated bouts of civil conflict. His legacy was shattered during the crisis that began in 2019.

His critics blame him for continuously funding the government and setting up the now-infamous financial engineering that kept the system afloat. They say Salameh is an enabler of the political class that failed time and time again to implement reforms.

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