The U.S. is influencing the choice of Lebanon’s next central bank governor to combat corruption and limit Hezbollah’s power following the election of U.S.-backed President Joseph Aoun. With the economy in disarray, the new governor will be crucial in implementing financial reforms needed for recovery and for engaging with the IMF for support.
The United States is actively involved in selecting Lebanon’s next central bank governor as part of its efforts to weaken Hezbollah and combat corruption in the country’s banking system. Following the election of US-backed president Joseph Aoun and the establishment of a new cabinet without direct Hezbollah representation, the U.S. is reviewing several candidates for this pivotal position, which plays a significant role in shaping Lebanon’s monetary policy amid an ongoing financial crisis.
The U.S. has displayed an unprecedented level of engagement in Lebanon, responding to the country’s dire economic circumstances caused by severe corruption and mismanagement. The continuing influence of Hezbollah has been a critical concern for Washington, especially after the group’s diminished power since last year’s conflict with Israel. Consequently, the new government, now led by Aoun, is tasked with appointing a permanent central bank governor, as the position has been held by an interim leader since July 2023.
Sources indicate that U.S. officials have met with potential candidates for the central bank role, addressing inquiries on how they would address issues related to “terrorist financing” and their stance towards Hezbollah. As explained by a Trump administration official, the U.S. is providing clear guidelines, emphasizing the need for candidates to be free from any ties to Hezbollah or past corruption, which they regard as crucial to enforcing economic reform.
Prominent candidates under review include former minister Camille Abousleiman, Firas Abi-Nassif, and asset management leaders Philippe Jabre and Karim Souaid. This incoming governor is expected to spearhead essential economic and financial reforms, which are critical for Lebanon’s recovery from its economic collapse that began in 2019 due to extensive corruption by political elites.
Lebanon’s new government aims to engage with the International Monetary Fund (IMF) for financial support, contingent on enacting the necessary reforms. Additionally, both Western and Arab nations are linking reconstruction assistance to the implementation of such reforms, particularly after extensive damage from the recent Israeli military operations. In light of this, discussions regarding the candidates have also involved dialogue with Saudi Arabian officials, reflecting a coordinated international effort.
In conclusion, the United States is strategically involved in selecting Lebanon’s next central bank governor to mitigate Hezbollah’s influence and address corruption within the banking system. With support for economic reform being an essential condition for international assistance, the newly appointed governor will play a pivotal role in navigating Lebanon’s recovery amidst a protracted financial crisis. This collaborative approach involving both the U.S. and regional partners marks a significant shift in diplomatic engagement in Lebanon.
Original Source: www.hindustantimes.com
