Banque du Liban Governor Riad Salameh, during an interview with AFP at his office in Beirut, December 15, 2017. (Credit: Joseph Eid/AFP/File photo)
BEIRUT — Lebanese caretaker ministers demanded the appointment of a new Banque du Liban (BDL) governor during a Monday cabinet meeting.
“The term extension of Banque du Liban Governor Riad Salameh was not discussed in today's session," said caretaker Information Minister Ziad Makari after the meeting. "The [BDL] deputy governors requested to provide cover for lending to the government and securing salaries. The ministers demanded the necessity of appointing a new governor for the Central Bank of Lebanon.”
According to Makari, the appointment is "a priority" but needs "appropriate conditions and atmosphere" that do not yet prevail.
Some political parties, notably the Christian parties, are opposed to any appointment by the caretaker cabinet in the absence of a president.
Salameh's mandate is due to end at the end of the month. At 72 years old, he has headed the BDL since 1993 and is now accused of being one of the main culprits behind Lebanon's financial ruin.
Salameh is also under investigation in several European countries, where he is suspected of amassing substantial real estate and banking wealth through a complex financial setup and massive misappropriation of Lebanese public funds.
On Saturday, Free Patriotic Movement (FPM) leader Gebran Bassil said that “corrupt” power brokers in Lebanon want Riad Salameh to stay in power at BDL “to protect them” despite his term being set to end this month.
On Thursday, the four BDL deputy governors outlined a strategy to “rectify the country’s monetary policy” and pave the way for a financial recovery.
Their plan is a major departure from Salameh's policies. It centers around floating the lira-to-dollar exchange rate in a “controlled manner” and using an “internationally recognized” exchange rate platform that will reflect the “real value of the lira.”
For years, Salameh adhered to financial engineering mechanisms to maintain an official LL1,507.5-to-the-dollar peg.