Latest news with #CentralBankofLebanon
MTV Lebanon
28-04-2025
- Business
- MTV Lebanon
After Washington discussions, the banking reform project is on the Finance Committee's agenda
Discussions between the Lebanese ministerial and parliamentary delegation in Washington highlighted the importance of passing reform laws between the government and the Parliament. While the financial regularization project remains a fundamental demand and an essential step that the government must focus on, discussing it and referring it to the Parliament to distribute commitments between the state, the Central Bank of Lebanon, and the banks, the banking reform project is set to be on the agenda of the Finance Committee on Wednesday, in a session called by MP Ibrahim Kanaan, after his return from Washington, to discuss the project which was referred by the government of Nawaf Salam just a few days ago. Eyes will be on the path the discussions on the law will take at the committee table, especially since its chairman has repeatedly called for an audit of the banks' assets in Lebanon and abroad as a starting point to determine how to return depositors' funds. A few days ago, the Parliament passed amendments to banking secrecy after being referred by the government.
National News
28-03-2025
- Business
- National News
President Aoun continues bilateral talks with Marcon over a working lunch, affirms determination to implement reforms
NNA - Following a joint press conference, President of the Republic, General Joseph Aoun, and French President, Emmanuel Macron, continued their bilateral talks over a working lunch. Discussions focused on strengthening and developing Lebanese-French relations and the support Paris can provide to Lebanon on the security, economic, oil, and social levels. During the bilateral talks, President Aoun affirmed his "determination to implement reforms, which practically have already begun with the appointment of a new governor for the Central Bank of Lebanon and the approval of a draft law to lift banking secrecy. President Aoun also indicated that "the appointments and procedures will soon be completed, ensuring Lebanon is ready ahead of the World Bank and International Monetary Fund meetings." He pointed out that "today's Israeli attacks have topped the discussion, with President Macron promising to contact President Trump and Netanyahu to discuss the situation and work to enable the monitoring committee to carry out its work, in accordance with the agreement reached last November."
Asharq Al-Awsat
28-03-2025
- Business
- Asharq Al-Awsat
Who Is Karim Souaid, the New Governor of Lebanon's Central Bank?
The Lebanese Cabinet has appointed Karim Souaid as the new Governor of the Central Bank of Lebanon during a government session held on Thursday at the Presidential Palace in Baabda. Souaid secured 17 votes out of 24, the total number of ministers in the Lebanese government. He is expected to play a pivotal role in restructuring the commercial banking sector and managing the distribution of an estimated $72 billion in financial losses resulting from Lebanon's economic collapse—a crisis that has impoverished most Lebanese citizens and devastated the local currency, according to Reuters. Souaid brings extensive experience in finance, banking, and law. A member of the New York State Bar Association since 1989, he studied banking law at Harvard Law School, where he wrote his thesis on the Glass-Steagall Act of 1933, a landmark US law that separated commercial banking from speculative investment banking. Souaid is closely associated with the 'Harvard Plan' for resolving Lebanon's economic crisis, a strategy funded by Growthgate Capital, where he served as founder and managing partner. He also has hands-on experience in regulatory compliance, financial structuring, and capital markets. From 1996 to 2000, he worked in equity issuances and banking securities in Lebanon, ensuring compliance with the Central Bank of Lebanon's regulations and the guidelines of the Lebanese Capital Markets Authority. Between May 2000 and May 2006, Souaid served as General Manager of Investment Banking at HSBC Middle East. In 2006, he founded Growthgate Equity Partners in the United Arab Emirates, an alternative asset management firm specializing in investments in private companies across the Middle East and North Africa (MENA) region. Additionally, Souaid has worked closely with finance ministries and central banks in several Arab countries, including the UAE, Qatar, Oman, Kuwait, Bahrain, and Jordan. He has played a key role in structuring and managing public offerings and the sale of securities for privatized entities.
LBCI
24-03-2025
- Business
- LBCI
Lebanese lira ranks as the world's weakest currency amid deepening economic crisis — What's driving its decline?
Report by Theresia Rahme, English Adaptation by Karine Keuchkerian Leading the world's weakest currencies, the Lebanese lira today ranks first in the Arab world and globally as the weakest currency, according to the Wise platform's classification. Regionally, it is followed by other depreciating currencies, including the Syrian pound, Iraqi dinar, Sudanese pound, and Yemeni rial. Globally, the Lebanese lira has even performed worse than the Iranian rial and is weaker than currencies from countries such as Vietnam, Sierra Leone, Laos, Indonesia, Uzbekistan, Guinea, and Paraguay. Every weak currency reflects a weaker economy. In Lebanon, several factors contribute to the weakness of the Lebanese lira. First, interventions by the Central Bank of Lebanon—printing more pounds and injecting money into the market without adequate coverage—have lowered its value. The currency quickly loses value when there are too many pounds in circulation and no corresponding production or reserves. Second, Lebanon imports more than 80% of its goods, meaning traders constantly need U.S. dollars. Since demand for dollars exceeds supply, the value of the Lebanese lira drops. Third, inflation has surged uncontrollably, surpassing 200% after 2019, further diminishing the purchasing power of the Lebanese lira. Fourth, the economy is weak, unemployment is rising, and people have less money to spend. Investors also lack confidence in the economy. Above all, there is a complete absence of political stability coupled with regional security tensions. In such a climate, investors flee, and the influx of U.S. dollars into the country decreases. Although these factors also affect other countries, Lebanon has been one of the most impacted due to the scale of the crises, lack of reforms, and chronic mismanagement.
