Salameh confirms departure, warns against stopping Sayrafa abruptly
Outgoing Central Bank Governor Riad Salameh has stressed that he will not stay in his post after his term expires on July 31, as he warned against abolishing the Sayarfa exchange platform in an abrupt manner.
“I declared a year ago that this would be my last term at the Banque du Liban and in a few days I will turn a page of my life,” Salameh said in an overnight interview on LBCI television.
“Throughout 27 years, the Central Bank contributed to establishing stability and economic growth and lowering interest,” Salameh added.
Hoping there will not be “disturbances in the market” after his departure, Salameh called for keeping “the mechanisms that contributed to the market’s stability.”
“I do not blame myself for the collapse, seeing as they want to turn me into a scapegoat,” Salameh added, noting that the Central Bank “financed the state and did not spend the funds.”
“May God forgive those who do not appreciate what I did,” he said.
Responding to criticism by Free Patriotic Movement chief Jebran Bassil, Salameh said: “The Central Bank has addressed the results of the government’s policies that led to a deficit in the electricity sector … We spent 25 billion dollars on the electricity plan, not to mention the subsidization policy and the new wage scale that I had warned against.”
The outgoing governor also denied having run a financial “Ponzi scheme.”
“If it’s true that we’re running a Ponzi scheme, we would not have managed to safeguard the market for three and a half years. They are clinging to slogans to mislead the people and convince them that the ‘thug’ Riad Salameh is the one who stole and is the one behind the collapse,” Salameh said.
“They have been surprised that the Central Bank is still standing on its feet,” he added.
As for the controversy over the duties of the Central Bank’s four vice governors when his term expires, Salameh said: “The mission of the Central Bank’s vice governors is to manage the institution, which I hope will remain resilient.”
As for the vice governors’ plan to set up an alternative to the Sayrafa platform, Salameh warned that “setting up a platform without the Central Bank’s intervention takes time.”
“The Central Bank must remain in the market, because there is no supply of dollars but rather demand, something that threatens the lira,” Salameh said.
“I do not want to abolish Sayrafa, seeing as it has made the Central Bank a key player in the market,” he added.
27 July 2023, 17:29
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Salameh is responsible for disastrous policies since 2019. Still he was one of best central bank governors & would be richer if stayed in private sector. He managed to keep economy afloat for decades despite Lebanon being under Basij occupation and Hizb systematic destruction of its institutions and business pillars. Hizbollah political risk would bankrupt any other country in no time. Maintaining stable currency & economy for 20 years is a miracle. Rafiq Hariri & Salameh were guiding Lebanon to new Singapore with growth higher than Turkey & China. Hizb 2006 War and subsequent actions reduced growth to zero. Stable currency & political stability are key for growth. Lira would never devaluate if growth was higher than 2%, much less than 8% after Cedar Revolution. Hizb and Useful Idiots Aoun/Bassil are 99% responsible for bankrupting our economy & destroying people lifetime savings & retirement funds; stealing their past, present and future. We owe them the truth.
27 July 2023, 22:39
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Alfred43, I would suggest you catch up on economy 101. Highest income countries like Monaco and Luxembourg don't depend on industry but on services. Lebanon with its education and location btw Europe and Asia can have multiple mini-Silicon valleys functioning as extended advanced remote offices to numerous industries. Prior to Hariri & M14 assassinations we were the hospital, banks, education and insurance providers to the region. Next step would have been highly automated industries and startups if it wasn't for political risk with crazy interests that made investment impossible. Sadly, some groups prefer destructive rockets over industrial robots. No doubt Hizb was getting economic advise from experts like you.
27 July 2023, 17:29
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What’s tragic comic is those characters on Al-Jadid playing inspector Clouseau looking for corruption in a tea cup while ignoring the hundreds of billion cost of Hizb actions from Hariri & M14 assassinations to freezing government, political risk impact on interest and growth, money laundering, illegal crossings, tax evasion, isolation, and what caused exodus of western firms & investments! Clearly they can’t tell the difference between millions and billions but they are surely drama experts with a Shakespearian bent. Sadly, Al-Jadid as Al-Akhbar & others are just some of the bought media and reporters complicit in cover up and misinformation. Luckily, truth always win at the end. Hizbollah hundreds of billion cost can be accurately estimated using risk management calculations. The Diaspora owe for next generations to fully expose and document what led to economic ruins by funding thesis at the world’s top economic universities so no one is duped anymore.
27 July 2023, 17:43
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Economy for dummies anyone with a calculator can verify:
A peaceful well governed nation can get loans at 2% yearly interest. Political instability increases interest to 6%-10% for same loan. In a country controlled by a criminal militia acting as Iran’s Foreign Legion, interest will exceed 15%.
A loan payable in 30 years costs:
80% more if interest=2% (base)
474% more if interest=6% (6 times more)
1645% more if interest=10% (20 times more )
6521% more if interest=15% (81 times more)
That is why investments dried up in Lebanon, economy collapsed, businesses and country went bankrupt, and banking system destroyed. Thanks for Useful Idiots Aoun, Bassil and Franjieh for taking us to hell while protecting Hizb criminal activity & risk to economy. Any long-term project approved while HizbIran control Lebanon or Frangieh elected will be costing Lebanese and their children several times its actual cost. Simple risk management calculations!
