Latest news with #WassimMansouri
LBCI
6 days ago
- Business
- LBCI
Uncertainty looms over fate of Lebanon's central bank vice governors
Report by Nada Andraos, English adaptation by Karine Keuchkerian The terms of Lebanon's four central bank vice governors end on June 9, sparking debate over whether to appoint new officials or renew the current vice governors for another full five-year term. Despite confirmation from political circles involved in nominating or endorsing candidates for each of the four vice governor positions—Shiite, Sunni, Druze, and Armenian—the prevailing view is to renew the term of Shiite Vice Governor Wassim Mansouri, whom both the president and the speaker of parliament want to keep in place, as well as the renewal of Armenian Vice Governor Alexander Mouradian. Although there had been reports of a possible replacement for Sunni Vice Governor Salim Chahine, the option of renewing his term has also been reconsidered. However, it remains undecided whether Druze Vice Governor Bachir Yakzan will be renewed or replaced by Makram Bou Nassar, the preferred candidate of the Progressive Socialist Party. Sources told LBCI that Finance Minister Yassine Jaber sent a letter to Central Bank Governor Karim Souaid to consult on the appointments of the vice governors. The consultation, as proposed by the finance minister, is understood to focus on renewing the terms of the four current vice governors, especially since the president, the speaker of parliament, and the prime minister do not oppose this. Pending the governor's response and further consultations, the finance minister will submit his proposal to the cabinet. Meanwhile, the finance minister is also reviewing nominations for the Banking Control Commission, which includes a Sunni president and four members representing the Maronite, Orthodox, Catholic, and Shiite sects. According to established procedures, the Maronite nominee is proposed by the Association of Banks, which has yet to finalize its candidate, while the finance minister proposes the other nominees. All of these decisions are expected to be submitted before the end of the vice governors' and the Banking Control Commission's terms. However, informed sources say the cabinet may extend the deadline if more time is needed to reach a broader consensus among stakeholders.
LBCI
04-04-2025
- Business
- LBCI
Karim Souaid steps in under new leadership: Will the new BDL governor uphold his promises?
Report by Yazbek Wehbe, English adaptation by Yasmine Jaroudi After more than three decades under Riad Salameh and nearly two years of interim leadership by Wassim Mansouri, the Banque du Liban (BDL) entered a new era with the appointment of Karim Souaid as governor. With the handover ceremony, his term begins with immense challenges and an ambitious pledge to steer the institution independently and within the framework of the Constitution and the Code of Money and Credit. In his inaugural remarks, Souaid committed to resisting political interference and curbing the influence of banking and economic lobbies. He emphasized that BDL should no longer serve as a financier for the public sector. Among the most pressing issues Souaid faces are developing strategies that balance stabilizing the banking sector and ensuring the stability of the national currency. He also underlined the importance of meeting the preconditions for an International Monetary Fund (IMF) agreement, which includes broad fiscal and economic reforms to attract investor confidence. Outgoing acting governor Wassim Mansouri outlined the efforts made during his tenure, including helping to maintain monetary stability after four years of currency collapse, halting state financing, expanding access under Circulars 158 and 166, unifying the exchange rate, and ending the "Sayrafa" platform in August 2023. He also cited cooperation with the judiciary in the forensic audit and efforts to restore ties with the global banking system. The transition to a permanent BDL governor, coupled with Souaid's reform pledges, marks a pivotal moment for Lebanon's financial future. However, tangible progress depends on serious legislative and executive reforms and a unified national position—particularly ahead of an upcoming visit to Washington by Lebanon's finance and economy ministers and the new governor for meetings with the IMF in two weeks.
Asharq Al-Awsat
25-03-2025
- Business
- Asharq Al-Awsat
Lebanese Central Bank Rejects Proposals to Invest Gold Reserves
The sharp rise in the market value of Lebanon's gold reserves has sparked renewed debate over their potential use to support the country's financial recovery. However, the central bank remains firm in its stance against any move to liquidate or invest the reserves, citing strict legal restrictions and the risks of mismanagement. A senior financial official, speaking to Asharq Al-Awsat, acknowledged the significance of these discussions, particularly as the central bank's updated figures estimate Lebanon's gold holdings at around $28 billion. However, he emphasized that before considering any new policies, a full qualitative audit of the reserves is necessary to determine their exact value, weight, and historical origins. Lebanon officially holds approximately 286.8 tons of gold, or 9.25 million ounces. This reserve was accumulated under the 1963 Monetary and Credit Law to back the Lebanese lira. Currently, two-thirds of the gold is stored securely at the central bank in Beirut, while the remaining third is held at Fort Knox in the United States. Despite the growing interest in leveraging this asset, Lebanese law strictly prohibits any direct or indirect transaction involving the gold. Law No. 42 of 1986 mandates that any sale, leasing, or investment of the reserves must receive explicit approval from Parliament. Acting Central Bank Governor Dr. Wassim Mansouri has reaffirmed this restriction, stating unequivocally: 'No matter what happens, I will not sign off on moving even a gram of gold.' Mansouri also highlighted the dangers of using reserves irresponsibly. Before Lebanon's financial collapse in late 2019, the central bank held around $33 billion in foreign currency reserves, while gold reserves were valued at $16 billion. The cash reserves were largely depleted through unsustainable subsidy programs, leaving only $8.5 billion today. 'We lost one and a half times the value of our gold, and it didn't solve anything. The idea of using gold is simply not an option,' he said. While some policymakers argue that investing the gold could generate much-needed revenue, financial experts warn that without proper governance, such a move could lead to further mismanagement. Instead, they stress the need for deeper economic and institutional reforms. A key priority is securing an agreement with the International Monetary Fund (IMF) to ensure financial discipline, transparency, and oversight. Any decision regarding the gold reserves would require parliamentary approval and a clear, well-justified plan. However, financial experts argue that Lebanon already possesses vast state-owned assets that, if managed properly, could help close the country's estimated $72 billion financial gap. These assets include coastal and riverfront properties, 850 million square meters of state-owned land, high-value real estate in Beirut and other cities, as well as key infrastructure such as electricity, water, telecommunications, ports, and transport networks. Many of these resources remain underutilized due to corruption and inefficiency.
MTV Lebanon
21-03-2025
- Business
- MTV Lebanon
Berri meets with visitors
Parliament Speaker Berri met in Ain El Tineh, with Acting Governor of the Central Bank Wassim Mansouri with whom he discussed the general situation, especially the financial and economic ones. Additionally, Speaker Berri received Lebanon's Army Commander, General Rodolph Haykal, who came on a protocol visit upon assuming the command of the Lebanese army. The pair reportedly discussed the general situation, particularly the security and field developments.
