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Political standoff shapes Lebanon's central bank: How Karim Souaid 'won' the post
News Bulletin Reports
27-03-2025 | 13:50
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Political standoff shapes Lebanon's central bank: How Karim Souaid 'won' the post
Report by Bassam Abou Zeid, English adaptation by Karine Keuchkerian
Lebanon has a new central bank governor, Karim Souaid. However, the key development came after the first political confrontation, in which President Joseph Aoun was able to impose his choice on Prime Minister Nawaf Salam.
The president won the confrontation through a vote in the cabinet. Souaid received 17 votes, more than two-thirds of the ministers' votes, while seven ministers, including Prime Minister Salam, objected.
All communications in the days leading up to the cabinet session failed to reach a consensus.
President Aoun remained firm on appointing him and rejected any delays or alternatives, while Salam opposed Souaid. With both leaders firm in their positions, Aoun and Salam entered the cabinet, and the discussion on the governor's appointment began.
During the debate, Minister Joe Issa El Khoury suggested calling Karim Souaid for a hearing. This was done, and Souaid arrived at the presidential palace, where he spent an hour answering questions from the president, the prime minister, and the ministers.
The questions focused on his views on fiscal policy, the process of reforming the banking sector and addressing the depositors' crisis. After the session, Souaid left, and voting began.
The appointment of a new governor for Lebanon's central bank has been a key demand from the Arab and international community, including global financial institutions such as the International Monetary Fund (IMF).
The government sent a message to the IMF responding to its demands for reforms that would ease significant portions of the banking secrecy restrictions that had previously been imposed.
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