Third Deputy Governor of the Banque du Liban, Salim Chahine, met in his office at BDL with a delegation from the Beirut Trustees Forum headed by Fadi Ghalayini, with talks centering on the overall financial and monetary conditions prevailing in Lebanon at the economic level. Chahine responded to the inquiries of the delegation members, explaining that the “Sayrafa exchange platform is a financial and economic need and a first step towards liberalizing the exchange rate and placing the financial situation on the right track,” adding that “more transparency is required to know the movement of transactions on the platform as well as the motives for buying and selling.” “It requires high-quality technical management far from any tensions, so that it can play its actual role in the markets and not be a competitive tool,” he went on. Chahine revealed that there is no substitute for an effective role by the International Monetary Fund in ending the financial crisis in Lebanon. “This role is essential in rebuilding the financial and economic sectors,” he said, stressing on “the Fund’s demand for structural reforms in the public and financial sectors, while the Parliament Council solely focuses through the Capital Control Law on determining losses and the fate of depositors’ funds.” “What is required is to take bold decisions to move the national economy and not to be held hostage to the cash economies, and therefore we pushed for the approval of Circular 165, which gives a margin for action pending reform decisions,” Chahine continued to explain. He emphasized that “there must be a separation between the Central Bank’s responsibility as to the party entrusted with maintaining monetary stability and the role of other bodies required to effectively control the movement of the banking sector.” Chahine considered that “the decisions issued by the Banque du Liban are the decisions of the Central Council, while the circulars are issued by the Governor personally, and he has the authority to do so, and those decisions may be after consultation with the government and the Minister of Finance.” He also hinted that many of the statements that are issued are “populist” in nature and have nothing to do with reality. “It would be preferable if communication occurs with those in charge of financial policy to give these statements and positions their actual value, most recent of which being the statements about the value of gold,” Chahine underlined.

Source: National News Agency – Lebanon