The Syrian revolution erupted in 2011, leading to an influx of Syrian refugees into Lebanon.
As a result of the political turmoil in the region, investments significantly declined, and the country's dollar reserves were no longer sufficient to cover excessive consumption.
However, in addition to the Syrian crisis and its aftermath, Lebanon faced several internal challenges:
- Resignation of Prime Minister Saad Hariri in 2011
- Events in Abra in 2013
- Bombings of Taqwa and Al-Salam Mosques in Tripoli in 2013
- Events in Arsal in 2014
In 2014, Lebanon entered a new and prolonged presidential vacancy after President Michel Sleiman's term ended. Political stagnation persisted, accompanied by wastage and corruption. The balance of payments remained negative (over 3.4 billion dollars by the end of 2015).
The Central Bank of Lebanon faced a breakdown, and for the first time, it tapped into its reserves and began using the dollars deposited by customers in banks to meet its financial obligations.
This compelled the central bank to employ financial engineering to attract dollars, enticing banks with high interest rates for their deposits.
Accordingly, the governor was able to buy time before a looming collapse, a move that some saw as a step towards increasing his chances of reaching the presidency.
Consequently, over 10 billion dollars (10.6) flowed into the banking sector in 2016, resulting in a surplus in the balance of payments (registering a plus of 1.5 billion dollars in 2016).
An additional contributing factor at that time was the political stability achieved through the election of a president and the formation of a unity government.
However, Salameh provided the political class with an opportunity to enact reforms, but this chance went to waste.