Lebanese central bank outlines plan to resolve depositors' crisis

By bne Gulf bureau February 4, 2025

Lebanon's acting central bank governor Wassim Mansouri has outlined plans to resolve the country's long-running depositors' crisis, telling Al-Eqtisadiah on February 4 that a comprehensive solution requires an executive authority capable of implementing an integrated plan within a reasonable timeframe.

In a telephone interview, Mansouri said that the bank's current "partial solutions" for specific periods cannot replace the reform laws that must be enacted between the government and parliament. While acknowledging lengthy delays in addressing the issue, he confirmed the new government would prioritise this file.

Lebanon's economic crisis intensified in 2019 when the country entered a financial collapse due to accumulated public debt.

The Lebanese pound's depreciation has severely hit citizens' purchasing power and local currency deposits, while unemployment rates have sharply increased.

The deposit crisis began in late 2019 when banks imposed strict restrictions on dollar withdrawals and international transfers, effectively trapping depositors' funds within the banking system.

Mansouri expressed cautious optimism following the recent election of a new president, describing it as a positive step toward restoring constitutional institutions' regular functioning.

"The election of a new president has positively impacted Lebanese markets, with high demand for the Lebanese pound indicating renewed confidence in the local currency," Mansouri said while emphasising that addressing the central bank's upcoming challenges depends on the next government's ability to implement reforms.

The central bank will continue working to ensure monetary and financial system stability, Mansouri added, noting this requires implementing necessary reforms as quickly as possible, including structural changes and re-engagement with the International Monetary Fund (IMF).

Related Articles

Doha Bank H1 net profit jumps 8.1% to QAR467mn

Doha Bank reported an 8.1% year-on-year increase in net profit to QAR467mn ($128.4mn) in the first half of 2025, with total assets reaching QAR123bn ($33.8bn), representing 16.2% growth on an ... more

Iraq confirms exemption from US oil export tariffs

Iraq's oil exports to the United States will not be affected by the newly announced 30% US tariff introduced by President Donald Trump to address the trade deficit with Iraq, the Ministry of Trade ... more

Iran leads world oil production growth with 13% increase

Iran topped global crude oil production growth in 2024, increasing output by 374,000 barrels per day (bpd) to achieve a 13% rise, according to OPEC's latest statistical bulletin. The Islamic ... more

Dismiss