Lebanon's Central Bank crisis: First Deputy Governor's sources warn of critical situation

The sources of the First Deputy Governor of the Central Bank of Lebanon, Wassim Mansouri, affirmed in an interview with "Al Joumhouria" that "the situation is extremely critical and sensitive. The step taken by the four deputies of the governor did not come as a response to any political considerations. Instead, it stemmed from their awareness of the potential danger the situation may pose if it remains.

"Therefore, the primary responsibility lies with the political authority, which must find a solution as soon as possible, namely appointing a new governor for the central bank. Article 18 of the Monetary and Credit Law is explicit regarding the appointment of the central bank governor and the implementation of the long-awaited measures and reforms," they added.

This article was initially published in, translated from, the Lebanese newspaper Al Joumhouria.   

The sources emphasized that they "understand the surprise of citizens regarding this step, but the political authority should not be, especially since we have been urging the responsible authorities for a long time to find a solution, yet we have not witnessed any concern for our appeals."

What was stated in the statement of the four deputies is a renewed and explicit call to the political authorities in the government and parliament to find effective means to preserve the monetary institution in Lebanon and ensure economic stability in the country, as any deterioration in this matter may not be easily controlled.

Furthermore, the sources pointed out that "our decision is final and taken with utmost seriousness, and therefore resignation is possible at any moment if we find it necessary due to the political authority's failure to fulfill its responsibilities and take the appropriate action, which is the appointment of a competent governor for the central bank. We do not evade our responsibility, but we are well aware of the burden's extent placed upon us. Thus we adhere to the legal framework without deviation while repeatedly urging everyone to assume their responsibilities."

The sources warned that any delay in the political authority's acceptance of its responsibilities and the appointment of a governor would ultimately lead to a catastrophic outcome.

Responding to whether the First Deputy Governor would assume the governor's responsibilities in case the appointment is impossible, the sources stated, "the statement of the four deputies clearly and unequivocally answers this question. However, in principle, no one evades their responsibility. But is this the solution? The fundamental solution lies in appointing a competent Central Bank of Lebanon governor. Moreover, how can the First Deputy Governor of the Central Bank effectively manage the monetary sector and be expected to formulate transparent and clear policies, both in the monetary field and in internal dealings within the Central Bank or concerning the banking sector, without being provided with the minimum legal tools to fulfill these tasks?"