Hariri, Banks to Launch 'Preemptive Battle' to Keep Salameh in Post

Prime Minister-designate Saad Hariri and Lebanon's banks will launch a “preemptive battle” to keep Central Bank Governor Riad Salameh in his post after the formation of the new government, a media report said.

“Hariri knows that some forces will propose a replacement, that's why he will wage a media and political campaign to draw red lines regarding Salameh's post,” al-Akhbar newspaper said on Tuesday.

Salameh, who has long been praised for stabilizing the monetary situation in the country, sounded a note of optimism after Hariri was named PM-designate on Thursday.

"The election of Michel Aoun should lead to the normal activity of the constitutional institutions, thus increasing confidence in economy," he said.

"The formation of a government will help in attracting foreign aid and mitigating the cost of the Syrian presence in Lebanon, which we estimate at five percent of GDP," he added.

Aoun's election after two and a half years of presidential void and Hariri's appointment as PM-designate have raised hopes that Lebanon can begin tackling challenges including a stagnant economy, a moribund political class and the influx of more than a million Syrian refugees.

The process of forming a government could take months, with horsetrading likely to revolve around the distribution of key posts like the finance, defense and energy ministries.