The United States is influencing Lebanon’s central bank leadership selection to combat corruption and restrain Hezbollah. This move follows Joseph Aoun’s presidency and aims to stabilize Lebanon’s banking system amid a financial crisis. The US is evaluating candidates for the governorship while insisting on non-affiliation with Hezbollah and corruption to facilitate economic reforms.
The United States is influencing the selection of Lebanon’s next central bank governor as part of its strategy to weaken Hezbollah and combat corruption within the banking system. Following the election of US-backed Joseph Aoun as president and the formation of a new cabinet lacking Hezbollah representation, the administration’s involvement reflects its proactive engagement amid Lebanon’s ongoing financial crisis. There has been a definitive push to reshape Lebanon’s monetary policy in light of the country’s economic meltdown which began in 2019.
With a vacuum in leadership due to the absence of a permanent central bank governor since July 2023, the US is currently assessing numerous candidates for this pivotal role. According to various anonymous sources, officials from the US government have met with potential candidates, scrutinizing their readiness to counteract Hezbollah and their strategies for tackling the financing of terrorism through the banking sector. This approach is aimed at ensuring that the next governor adheres to strict guidelines against any associations with Hezbollah or corruption.
Candidates under consideration for the governorship include former minister Camille Abousleiman, investment firm head Firas Abi-Nassif, and asset management leaders Philippe Jabre and Karim Souaid. Their selection will be crucial for executing the economic reforms that Aoun and Prime Minister Nawaf Salam promised to prioritize, as Lebanon seeks to navigate out of its financial turmoil and revive discussions on a financing program with the International Monetary Fund.
Lebanon’s new government faces immense pressure from both Western and Arab nations to implement substantial reforms before any support can be extended to rebuild the damaged infrastructure following last year’s military conflicts. US discussions with Saudi officials also indicate that regional stakeholders are involved in these critical decisions surrounding the central bank governorship.
The incoming governor will succeed Wassim Mansouri, who took over following the controversial tenure of Riad Salameh. Salameh’s administration, once regarded as exemplary, ended amid allegations of corruption and economic mismanagement, leading to sanctions from the United States, Britain, and Canada after his departure. This situation has underscored the urgency for Lebanon to enhance its banking sector compliance and address issues of money laundering and terrorist financing.
In summary, the United States is actively participating in the process of selecting Lebanon’s next central bank governor as part of its broader strategy to weaken Hezbollah and enhance economic reforms within the country. The selection is crucial in addressing Lebanon’s financial crisis and resuming cooperation with international financial institutions. The emphasis on candidates’ integrity and commitment to reform underscores the challenges faced by Lebanon in restoring confidence within its banking system and attracting necessary aid.
Original Source: www.hindustantimes.com
