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Countdown begins for the end of Lebanon's BDL governor's term
News Bulletin Reports
2023-07-18 | 13:30
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Countdown begins for the end of Lebanon's BDL governor's term
The countdown has commenced for the end of the current governor's term at the Central Bank of Lebanon, prompting a series of consultations with its four deputies who are expected to assume their roles.
High-ranking officials, including ministers and lawmakers, are also engaging in crucial discussions to foster cooperation in implementing reforms and securing political backing for future endeavors.
The initial meeting took place with members of the Parliamentary Committee for Administration and Justice. Lebanon's central governor deputies emphasized that the first reform step should involve halting the Sayrafa exchange platform, which has been depleting reserves. Instead, they proposed the establishment of an alternative platform that minimizes central bank intervention and stabilizes exchange rates in the market. This reform aligns with the International Monetary Fund's requirements, albeit with repercussions on the value of the national currency.
Furthermore, the four deputies are advocating for legislation that allows them to tap into mandatory reserves, not for the purpose of interfering with Sayrafa but rather to support marginalized groups most affected by the soaring exchange rates.
However, members of Parliament requested detailed figures related to reserves, the extent of current central bank intervention, and the implications for exchange rates.
During the first consultative meeting, no decisions or agreements were reached, leaving further discussions scheduled for the following Thursday.
The deliberations aim to strike a delicate balance between implementing much-needed reforms, addressing the economic crisis, and ensuring the necessary political support for the upcoming period.
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