Countdown to the end: BDL Governor's deputies' critical decision as Governor's term expires in three days

Lebanon's First Deputy Governor of the Banque du Liban (BDL), Wassim Mansouri, faces a critical decision about assuming the mantle of responsibility alongside the three other Governor's deputies after July 31.

Mansouri is set to hold a press conference at the BDL on Monday to clarify his position. The question arises whether he will announce his resignation, leading to the request for him to continue handling the caretaker affairs temporarily.

In the meantime, the third meeting between Caretaker Prime Minister Najib Mikati and the four Governor's deputies reassured them on Thursday.

Sources close to the officials revealed to LBCI that they remain committed to the government's implementation of their reform plan within the stipulated six months. The plan encompasses vital laws, including adopting the 2023 budget, capital control, restructuring the banking sector, and addressing the fiscal deficit.

However, these laws are contingent upon another crucial step, requiring the enactment of legislation in Parliament that allows the BDL to lend the government a sum equivalent to $200 million monthly from the mandatory reserve for three months. This loan aims to cover the state's needs, including employee salaries, wheat subsidy, cancer medications, paying interest on foreign loans, and intervening in the market when needed. The government is expected to reimburse this amount through revenues by the end of the year.

Nonetheless, several questions arise in this regard.

What if the Parliament fails to convene and vote on the proposed law? Will the Strong Lebanon Bloc secure the quorum amid rumors that Hezbollah has taken on this responsibility?

What if the presidential elections are postponed beyond the end of October, the expiry date of this proposal? Will its effect be extended, and who guarantees that?

What if speculators heavily intervene to capitalize on the situation and increase the dollar's exchange rate against the Lebanese lira?

Governmental sources indicated a clear roadmap discussed in the recent meeting between Prime Minister Mikati and the deputies and that the entire matter will be addressed in the Cabinet meeting dedicated to the budget on Monday.

Nonetheless, the deputies' sources indicate a positive direction enabling sound monetary policies.

The outcome remains uncertain, and the nation waits to see how events unfold.