Press Release – The Lebanese Business Leaders Association (RDCL): The Need for a Change of Direction at the Central Bank of Lebanon

BEIRUT, July 31, 2023: With the current and imminent change in the leadership of the Central Bank of Lebanon, the Lebanese Business Leaders Association (RDCL) calls for an urgent change of direction with regards to transparency, governance, and monetary policies of the central bank. This shift is crucial to compel the authorities to implement long-awaited reforms to address the economic, financial, and social crisis.

The mission of the vice-governors, who must be completely independent from political interferences according to the code of money and credit, should focus on the following objectives:

First, immediately cease financing any public deficit through printing Lebanese pounds, as this only exacerbates inflation amid a deficit in the balance of payments. They must also safeguard the remaining foreign currency reserves, to minimize the impact on the remaining bank deposits. This policy will force the authorities to enforce the restructuring of the size of the public sector, enact a balanced budget, establish public-private partnerships, restructure state-owned enterprises and institutions, and finalize a program with the IMF, as well as banks’ restructuring, and public debt.

Second, implement the much-awaited structural reforms, good governance, and transparency.

Third, extend the authority of the law to unlicensed financial institutions.

Fourth and last, unify the exchange rates by adopting a transparent exchange platform to eliminate arbitrage profits.