As the meeting of the Lebanese Cabinet is set to commence today to discuss the 2023 budget law, the fate of the transitional period following the end of Riad Salameh's tenure as Governor of the Central Bank of Lebanon remains uncertain, with various scenarios being debated. The transition to Salameh's deputy, Wassim Mansouri, is seen as the natural and legal progression, scheduled to take place on the first of August. However, amidst discussions in circles close to the Parliament Speaker Nabih Berri, there have been indications of Berri's refusal that Mansouri assumes the Governor's powers.
This article is originally published in, translated from Lebanese newspaper al-Joumhouria.
Behind the scenes, political and governmental circles have been abuzz with proposals to extend Salameh's presence at the Central Bank, further complicated by a recent exceptional meeting requested by Caretaker Prime Minister Najib Mikati with the four deputies of the Governor. During Mikati's absence from Lebanon, these deputies discussed various suggestions, hinting at a potential shift in Mikati's stance on Salameh's extension, leaving the matter to be governed by the Code of Money and Credit, regardless of the numerous proposals aiming to avoid any negative monetary, financial, or social repercussions that could endanger the country's minimum economic and social security and curb attempts to manipulate the US dollar rate and its impact on the lives of the Lebanese people. According to government sources to al-Joumhouria, Mikati has no intention of discussing appointments or extensions for Salameh or any other person for the vacant positions, as his administration cannot bear such a decision. He will urge the Governor's deputies to postpone any actions they might be considering until the end of Salameh's term. There have been rumors that the deputies might announce a collective resignation tomorrow. However, these reports have not been confirmed nor denied by the deputies themselves, leaving it to be seen what Mikati's stance will be. Amidst various narratives circulating, political and legal sources in the opposition have informed "Al-Joumhouria" newspaper that any proposal that could lead the caretaker government to extend or appoint a new Governor of the Central Bank of Lebanon would constitute a major constitutional breach that could be challenged in the relevant authorities within a few days. These sources emphasized that adhering to the Code of Money and Credit provisions during this transition is the best course of action. Any deviation from it would be a constitutional and legal misstep the current government cannot afford. Such a move would lead the country further into different levels of collapse and increase the public's conviction of the government's failure throughout the caretaker period. This period began after those responsible failed to form a new government before the end of the previous President Michel Aoun's term. Regarding the potential resignation of the Governor's deputies, the sources stated that "in the absence of acceptance, such a step would be equivalent to dismissing the already resigned Mikati government by the end of Aoun's term. The legal and constitutional interpretations of these two actions are similar in form but differ in substance, considering the subject matter." Knowledgeable insiders reported to "Al-Joumhouria" that an official reference firmly stated there would be no extension for Riad Salameh as Governor of the Central Bank of Lebanon because no one can bear this decision. Likewise, there would be no appointment of a new governor. Furthermore, these sources speculated that the four deputies of the Governor may resign but continue to carry out their duties after their resignations are rejected. This would mean that their resignations if submitted, would be merely symbolic and have no substantial impact. A constitutional opinion suggests that since the caretaker government cannot appoint an authentic governor, it also cannot accept the resignation of the four deputies. Hence, they would continue to fulfill their roles automatically.