The U.S. is participating in the selection of Lebanon’s new central bank governor to combat corruption and limit Hezbollah’s financial support. With a renewed focus on reforms under President Joseph Aoun’s administration, the U.S. is consulting on candidate qualifications, seeking to establish a governor capable of leading economic recovery efforts and ensuring compliance with international regulations.
The United States is actively involved in selecting Lebanon’s next central bank governor, aiming to combat corruption and the financial support of Hezbollah. This initiative follows the election of Joseph Aoun as president and the formation of a cabinet that does not include direct Hezbollah representation. The U.S. engagement reflects its strategic objective to limit Hezbollah’s influence amid Lebanon’s ongoing economic crisis, which has persisted for over five years.
Given the critical nature of monetary policy in Lebanon, the U.S. is scrutinizing various candidates for the central bank position. Reports indicate that U.S. officials have engaged with prospective candidates, inquiring about their strategies for addressing “terrorist financing” and their willingness to confront Hezbollah. Notably, the interim governorship has been held since July 2023, following the previous governor’s controversial exit.
Among those under consideration are individuals such as former minister Camille Abousleiman and investment firm heads Firas Abi-Nassif, Philippe Jabre, and Karim Souaid. The selection of a competent governor is vital for implementing essential economic reforms to lift Lebanon out of its financial mayhem, which stemmed from corruption and mismanagement.
The newly formed government intends to renew discussions with the International Monetary Fund for financial assistance, contingent upon the execution of these reforms. Furthermore, both Western and Arab partners demand reform before providing any reconstruction aid in light of the destruction caused by recent conflicts.
Dialogue regarding candidates for the central bank leadership also involves collaboration with Saudi Arabia, as the U.S. aims to coordinate its approach to Lebanon’s financial governance. The next governor will succeed Wassim Mansouri, who has been managing the central bank since the tenure of Riad Salameh ended amid scandal. Salameh’s legacy is marred by financial misconduct allegations, leading to sanctions from multiple countries.
In summary, the U.S. is exerting influence over the appointment of Lebanon’s next central bank chief as part of a larger strategy to undermine Hezbollah and foster economic reform. This approach underscores the importance of transparency and accountability within Lebanon’s financial system in light of past corruption. Selecting a capable governor is crucial for reviving Lebanon’s economy and addressing the requirements set forth by international stakeholders.
Original Source: www.hindustantimes.com
