The Story of Salameh: The Start of the Journey

Once revered as Lebanon's economic watchdog, Governor of the Bank of Lebanon, Riad Salameh, now finds his reputation mired in controversy. Born in 1950 in Antelias, Salameh’s professional journey began at Merrill Lynch, but his meteoric rise would eventually see him dubbed the best central bank governor.

Who is Riad Salameh?

Educated at Collège Notre Dame de Jamhour School, Salameh went on to receive a degree in Economics from the American University in Beirut. His career took off at the global financial firm Merrill Lynch, where he became the manager for the wealth of affluent clients, including business tycoon Rafik Hariri.

When Hariri became Prime Minister after the civil war, Salameh was appointed the governor of the Bank of Lebanon in 1993, becoming its fifth governor since its establishment in 1964.

Throughout his career, Salameh has masterfully built alliances while maintaining neutrality among Lebanon's various political factions that make up the ruling class. These relationships helped bring his name into the list of potential presidential candidates, a desire he expressed to journalists according to WikiLeaks. 

During his tenure, Salameh served under four Presidents, eight Prime Ministers, and six elected parliamentary councils, and his term was renewed four times in 1999, 2005, 2011, and lastly in 2017 during President Michel Aoun's term. This lengthy tenure of 30 years has broken the record for the longest-serving central bank governor, surpassing the previous record holders from Mexico (24 years) and Venezuela (21 years).

Salameh’s Economic Strategy: A Double-Edged Sword?

Salameh is known for pegging the Lebanese pound to the dollar at 1,500 in 1997. The primary objective was to give an impression of stability, aiming to attract investment and dollars to Lebanon. Simultaneously, this policy provided Lebanese citizens with purchasing power for nearly 25 years.

However, to maintain this model, the Bank of Lebanon had to attract dollars to stabilize the pound and finance government expenditures, despite the lack of plans or financial reforms from successive governments.

Salameh’s Legacy: Savior or Culprit?

Salameh has seen Lebanon through times of peace, war, and prosperity and has overseen every dollar that entered and left the country, right up to the point of economic collapse.

His critics argue that his policies contributed to the country's current financial crisis and accuse him of embezzlement, while his supporters credit him with maintaining relative financial stability in an otherwise tumultuous region.

After 30 years at the helm, the question remains: where does Riad Salameh go from here? As Lebanon continues to navigate its complex economic landscape, the legacy of this influential figure is poised to remain a point of heated debate.