Lebanon’s central bank outlines priorities, reaffirms monetary stability as top priority

Lebanon’s central bank said it has no objective beyond a set of fixed priorities, responding to reports circulated in some newspapers, stressing that both the central bank and its governor remain focused on safeguarding monetary stability under all circumstances.

In a Monday statement, Banque Du Liban said its priorities include working toward the return of depositors’ funds in line with mechanisms set out in a financial regularization law, restoring the banking sector as a key condition for economic growth, and strengthening public finances, including maintaining currency stability, to enable the state to meet its obligations to citizens and public sector employees.

The central bank added that it is “bound and committed to a single agenda: preserving monetary stability,” noting that it has been working closely with relevant ministries, particularly the Finance Ministry, as well as financial sector stakeholders, to ensure a steady inflow of foreign currency and maintain exchange rate stability.

It stressed that these efforts are being carried out within frameworks that do not compromise its disciplined policy aimed at protecting funds allocated to depositors and those belonging to the state, ensuring a balanced approach between the two.

The bank stated that it operates strictly within the law, in coordination with the government and in cooperation with the Ministry of Finance, to ensure coherence between fiscal and monetary policies.  

The statement concluded by emphasizing that political stability, which the government is working to achieve, remains the foundation for any economic stability, noting that progress on this front is essential to restoring confidence, enhancing the effectiveness of monetary policies, and supporting the recovery of both the public and private sectors.