The acting governor of the BDL, Wassim Manssouri, during a press conference on August 25, 2023. (Credit: Mohammad Yassin/L'Orient Today)
BEIRUT — Wassim Mansouri, acting governor of Banque du Liban (BDL), struck an optimistic tone on Sunday, describing "the next phase for Lebanon" as promising on the economic front and announcing "good news" from the International Monetary Fund (IMF), which he characterized as being "guided by both technical and political considerations."
Mansouri's comments, made during a meeting with Aouni al-Kaaki, president of the Order of the Press, were reported by several local media outlets.
The acting governor pointed to several developments he deemed encouraging, including progress toward securing international financial support. The developments also include the election of General Joseph Aoun, the former army commander, as Lebanon’s president — ending more than two years of a presidential vacuum — and the appointment of Nawaf Salam as prime minister. Many analysts believe that these developments signal the country entering a new chapter.
In his rare public appearance, Mansouri has expressed cautious optimism about Lebanon’s economic recovery plan.
International observers share mixed views. In mid-January, Moody's projected a potential "recovery in economic activity in Lebanon in 2025, subject to a permanent cessation of hostilities." Meanwhile, Eurobond prices have steadied at 16–17 cents on the dollar over the past two weeks, reflecting both investor optimism and speculative interest. However, securing a new IMF program remains a critical step in moving beyond projections and translating optimism into tangible progress.
'Fixed exchange rate'
An article published last week on the news site al-Modon questioned Mansouri's analysis of "the distribution of 1,260,000 accounts in the Lebanese banking sector, within a total exceeding $86 billion." Lebanese media accused the study’s author of using "misleading figures" and pointed to several discrepancies with "current financial realities and available data." Mansouri did not address these allegations during his meeting on Sunday, where the topic was notably absent from discussions.
During the meeting, Mansouri, who succeeded Riad Salameh — widely blamed by many politicians and segments of the public for Lebanon’s financial collapse and currently being prosecuted for various scandals — touched on other economic matters. He highlighted that "the stability of the exchange rate has cost [BDL] nothing since August 2024 until now," adding that the central bank had generated over "two billion dollars in additional profits."
Mansouri dismissed calls for a "revision" of the exchange rate, which the BDL manages by tightly controlling the Lebanese lira’s money supply and limiting state funding. He argued that such a move would serve no one’s interests but added that he was "ready to consider changing the exchange rate if circumstances dictate," without offering further details.
For over a year, Lebanon’s exchange rate has remained stable at L.L. 89,500 to the dollar, following a prolonged period of volatility sparked by the 2019 financial crisis. The crisis saw the lira lose more than 90% of its value, devastating the country’s economy and its citizens’ purchasing power.
Mansouri sought to reassure the public that Lebanon's addition to the Financial Action Task Force (FATF) grey list in October 2024 would not affect the use of cards issued by Lebanese banks for international payments.
The FATF, which establishes global standards to combat money laundering and terrorism financing, placed Lebanon on its grey list as part of its intensified monitoring process. However, Mansouri stated that the country’s inclusion would not disrupt financial transactions abroad.
Before Lebanon's addition to the FATF grey list was formalized, Mansouri repeatedly assured that the decision would not impact relationships with foreign correspondent banks still engaging with the country. In his latest remarks, he revealed that American banks had made "very encouraging" offers of collaboration with BDL, while emphasizing the central bank’s commitment to the "regulation and supervision" of electronic payment systems.
On the issue of bank restructuring, Mansouri described the process as "almost ready," including plans for bank mergers expected in the near future. He highlighted the primary challenge: addressing the distribution of losses tied to depositors' funds, which have been unlawfully frozen in banks since the start of Lebanon’s financial crisis. Expressing regret over the unfair treatment of depositors, he mentioned the potential application of a carefully considered haircut policy aimed at achieving an equitable distribution of funds. "What we need in Lebanon is reconciliation between banks and depositors. The latter must accept their losses," he said.
These remarks ignited a backlash on social media, with many expressing outrage on Monday. In response to the criticism, Mansouri issued a statement denying the comments, calling them "false information that in no way reflects" his position.
Over the years, numerous proposals to resolve Lebanon’s banking crisis and return deposits unlawfully frozen by banks have been introduced, but none have succeeded. The most recent plan, presented on Jan. 7, met the same fate as its predecessors since 2020, rejected during a government meeting at the Grand Serail.
Mansouri has advocated for the state to retain control over its assets, a stance that clashes with the views of the Association of Banks in Lebanon and some large depositors. These groups argue that state assets should at least be managed by private entities, if not fully privatized, with profits from such management or sales used to reimburse depositors.
He also emphasized "the need to preserve [state assets] under its control," citing their importance to "future generations." He distinguished between the state’s ownership of public assets, which he argued must remain under government control, and the income generated by those assets, which he said should be better managed.
The acting governor did, however, dwell on the fact that the revenues generated by these assets are not always well "exploited". "Appropriate" management of these resources could "help restore some of depositors' funds," he said, while arguing that rigorous management could pave the way for effective solutions.
"Good ideas exist in Lebanon, but they must be put into practice," he stressed, calling on the new government to "define from the outset a clear and long-term action plan, drawn around the rights and obligations of each party, and to ensure its implementation" in the coming years.
One million and five hundred thousand notes
Mansouri dismissed the need for parliamentary approval on the printing of one million and five hundred banknotes, calling the step "irrelevant." Instead, he floated the idea of introducing a new currency as a potential solution to restore the Lebanese lira's value.
He expressed hope for a "formula for a new currency" that could enable the lira to "regain its former greatness."
