Karim Souaid steps in under new leadership: Will the new BDL governor uphold his promises?

Report by Yazbek Wehbe, English adaptation by Yasmine Jaroudi  

After more than three decades under Riad Salameh and nearly two years of interim leadership by Wassim Mansouri, the Banque du Liban (BDL) entered a new era with the appointment of Karim Souaid as governor. 

With the handover ceremony, his term begins with immense challenges and an ambitious pledge to steer the institution independently and within the framework of the Constitution and the Code of Money and Credit.

In his inaugural remarks, Souaid committed to resisting political interference and curbing the influence of banking and economic lobbies. He emphasized that BDL should no longer serve as a financier for the public sector.

Among the most pressing issues Souaid faces are developing strategies that balance stabilizing the banking sector and ensuring the stability of the national currency. He also underlined the importance of meeting the preconditions for an International Monetary Fund (IMF) agreement, which includes broad fiscal and economic reforms to attract investor confidence.

Outgoing acting governor Wassim Mansouri outlined the efforts made during his tenure, including helping to maintain monetary stability after four years of currency collapse, halting state financing, expanding access under Circulars 158 and 166, unifying the exchange rate, and ending the "Sayrafa" platform in August 2023. He also cited cooperation with the judiciary in the forensic audit and efforts to restore ties with the global banking system.

The transition to a permanent BDL governor, coupled with Souaid's reform pledges, marks a pivotal moment for Lebanon's financial future. 

However, tangible progress depends on serious legislative and executive reforms and a unified national position—particularly ahead of an upcoming visit to Washington by Lebanon's finance and economy ministers and the new governor for meetings with the IMF in two weeks.