The U.S. plans to influence the selection of Lebanon’s Central Bank Governor to fight corruption and limit Hezbollah’s funding. This intervention represents a notable U.S. engagement in Lebanon amid a prolonged economic crisis. The new governor will be critical in implementing economic reforms crucial for Lebanon’s recovery.
The United States is set to intervene in the selection of Lebanon’s new Central Bank Governor, driven by a desire to combat corruption and prevent Hezbollah’s financing through the banking system. This involvement underscores Washington’s strategic interest in Lebanese affairs amid the nation’s ongoing economic crisis, which has persisted for more than five years, resulting in a significant financial collapse.
This active role follows the election of Joseph Aoun, a candidate supported by the U.S., and the establishment of a new government devoid of direct Hezbollah involvement. Currently, the post of Central Bank Governor is temporarily filled by an interim governor since July 2023, necessitating the formation of a sustainable governance structure.
U.S. officials are assessing multiple profiles of potential candidates for the governorship, with ongoing discussions with some candidates held in Washington and at the U.S. Embassy in Beirut. These dialogues primarily focus on strategies to combat terrorism financing and confront Hezbollah’s influence within Lebanon.
While the U.S. government, including the State Department and the White House, has refrained from commenting on this matter, an official indicated that the selection criteria for candidates are clear: they must not have connections to Hezbollah or any involvement in corruption. The emphasis is also on the need for a candidate who is committed to implementing necessary economic reforms in Lebanon.
Several candidates have emerged, including former minister Camille Abu Suleiman, investment firm head Firas Abi Nassif, and International Monetary Fund’s Jihad Azour, among others. The new governor’s role will be pivotal in executing the anticipated economic reforms, which are essential for addressing the financial crisis stemming from years of corruption and fiscal mismanagement.
The government aims to restart discussions with the International Monetary Fund regarding a potential financial aid package, contingent upon the execution of economic reforms. Additionally, both Western and regional powers have prioritized these reforms as prerequisites for aiding Lebanon’s recovery efforts following previous military conflicts and ongoing instability.
The new governor will replace Wassim Mansouri, the interim head since the controversial exit of Riad Salameh, who led the Central Bank for three decades. Salameh’s tenure ended in scandal, leading to subsequent sanctions by the U.S., UK, and Canada, as well as legal challenges regarding corruption, leaving a stark legacy amid Lebanon’s financial turmoil.
In conclusion, U.S. intervention in the selection of Lebanon’s Central Bank Governor reflects a critical strategy to curb corruption and undermine Hezbollah’s financial mechanisms. As the country navigates a severe economic crisis, the selection of a suitable candidate, devoid of previous corruption ties, is fundamental for implementing necessary reforms. The ongoing discussions with potential candidates signal a new chapter in Lebanese governance that could steer the nation towards a more stable financial future.
Original Source: www.jordannews.jo
