“Out of service”: The appointment crisis paralyzes the Central Council of the Bank of Lebanon
“Out of service”: The appointment crisis paralyzes the Central Council of the Bank of Lebanon
Lebanon is facing new cash paralysis … Who is the Save the Bank of Lebanon?
Lebanon lives again on the impact of a severe crisis that affects one of its most important sovereign institutions: Central Bank of Lebanon. The bank’s central council has become officially out of service, after the end of the four governor’s representatives, awaiting new appointments that are still stuck in the corridors of politics and sectarianism.
This crisis is not a transient detail, but rather threatens the entire financial system, and raises fateful questions about The independence of the Bank of LebanonAnd the future of monetary policies in a country suffering from a comprehensive economic collapse.
3 potential scenarios … but will you win?
The first scenario: the extension of the current four deputies
Infected political circles indicate that the first option on the table is Extension of the current four deputies. This decision means maintaining the previous path itself, with the symbolism it carries:
- The continued dominance of traditional political forces on the bank’s decisions.
- Weakening the ability of the new ruler, Karim SaeedAssuming a reform or renewal vision within the bank.
- All demands for reform and change that the Lebanese and the international community have been ignored years ago.
The second scenario: a complete change of the four deputies
The second option, the most bold theoretically, is Four new deputies are appointedWhich may constitute a new starting point in conjunction with the new ruler. but:
- Will these deputies be chosen according to? Standards of efficiency and transparency?
- Or is we facing a “formal change” that reproduces the same sectarian and partisan quotas?
- Will the new ruler really be free from the restrictions of the political system, or will he find himself in the face of balances that disrupt his decisions?
The third scenario: partial switch … between balance and formalism
As for the third scenario, which is the weakest currently, it suggests Keeping some deputies and changing others.
This option seems to be an attempt to satisfy everyone without prejudice to the essence of the system, which may lead to:
- Monetary policy remains in paralysis.
- The continued lack of confidence locally and internationally.
- Increased popular frustration with any hope for serious reform.
What does the paralysis of the Central Council for the future of the Lebanese economy mean?
Central Council in Bank of Lebanon It is the upper side responsible for making strategic decisions that affect the life of every Lebanese. The council consists of:
- Ruler
- Four deputies
- Financial Public Prosecutor
- Director General of the Ministry of Finance
- Director General of the Ministry of Economy
The absence of a complete quorum, after the void of the position of the ruler’s deputies, means actually Completely disable the Central CouncilAnd the inability to make vital decisions related to monetary policy, market regulation, and the monitoring of the banking sector.
A hot summer without repairs … Is Lebanon on the brink of a coin?
Lebanon stands today in front of a detailed entitlement.
In light of the deterioration of the economic situation, the deterioration of the Lebanese lira, and the decline in the confidence of the depositors and the international community, the continued disruption of the Bank of Lebanon will spend matters, especially with the entry of the summer season that is relied upon to provide some liquidity through expatriates and tourism.
But this dose will not suffice if it remains The appointments are subject to the logic of sectarian and political quotasAnd if the state continues to deal with sensitive institutions with the mentality of deals, not reform.
Is there hope?
The appointment of new deputies may be a real opportunity to restore prestige to the Bank of Lebanon, but only if the appointments are made based on clear criteria:
- Efficiency and experience
- Transparency
- Full independence from political forces
Otherwise, Lebanon is coming to more cash paralysis, and perhaps on A new economic explosionNo one will be immune to its repercussions.
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