New central bank governor elected in Lebanon

BEIRUT -- The Lebanese government elected Karim Soueid as Lebanon's new central bank governor on Thursday, with 17 out of 24 votes, MTV local TV channel reported.

Following a cabinet session for the election, Lebanese Prime Minister Nawaf Salam stated that Soueid should commit to the government's reformist financial policy, particularly in negotiating a new program with the International Monetary Fund and implementing restructuring measures to safeguard depositors' funds.

On July 31, 2023, Lebanon's Central Bank Governor Riad Salameh ended his 30-year tenure as scheduled amid charges of money laundering and embezzling public funds in Lebanon and abroad against him.

Later that day, Wassim Mansouri, the central bank's first vice governor back then, confirmed himself at a press conference as the acting head of the central bank starting August 1, 2023, as Lebanese authorities failed to appoint a successor to Salameh.

Lebanon's financial crisis, which began in 2019, has led to a shortage of foreign currency and caused billions of dollars' loss for the country's banking sector. As a result, banks have imposed informal capital controls, restricting depositors' access to their dollar savings.

On Salameh's stepping down, Lebanon's financial losses exceeded 72 billion U.S. dollars, more than three times its gross domestic product in 2021, the World Bank said back in 2023.