A changing tide: Lebanon's Central Bank faces leadership vacuum

In a clear statement, the four deputies of Lebanon's central bank governor, Riad Salameh, have firmly dismissed any doubts, affirming that neither First Deputy Governor Wassim Mansouri nor the other three deputies are willing to assume the governor's duties after his term ends on July 31.

In their statement, the governor's deputies called for the appointment of a new governor per the Monetary and Credit Law as soon as possible. They warned they would be compelled to take appropriate action in the public interest if this does not happen.

Sources within the Banque du Liban (BDL) indicated that the governor's deputies might collectively resign if a new governor is not appointed.

The deputies' statement criticized the absence of a comprehensive plan to restore financial and banking stability, as well as the lack of balance in the budget. It emphasized that the concept of caretaker authority should not be extended to the country's highest monetary authority, which is Lebanon's central bank.

Furthermore, the BDL sources argued that the Amal-Hezbollah duo's claims of imposing Wassim Mansouri as the first deputy governor are unfounded. They added that Mansouri is still committed to avoiding confrontation with Christians.

The sources also questioned what would happen if Mansouri assumed the governor's duties and decided to implement the International Monetary Fund's (IMF) demands. They raised concerns about the feasibility of such a move given the ambiguity surrounding the stance of several political parties regarding reaching an agreement with the IMF.

As the end of Governor Riad Salameh's term draws near, none of the political parties participating in the government's meetings currently dare to request an extension for him. It is worth noting that the Free Patriotic Movement (FPM), Lebanese Forces, and Kataeb Party all oppose any form of extension. This raises the question of what the solution might be.

Several scenarios are being discussed, including the possibility of the deputies resigning along with the end of Salameh's term and the failure to appoint a new governor. In that case, the Cabinet, with the majority in attendance, may resort to tasking the outgoing governor and the resigning deputies to continue their duties at the BDL until the election of a new president, the formation of a government, and new appointments are made.