Report: Criticism of BDL Governor Reflect on Dollar Demand
Although Banque du Liban Governor Riad Salameh refrained from responding to Economy Minister Mansour Bteish’s “criticisms,” but his remarks had a negative impact on Lebanon’s stock market yesterday, al-Joumhouria daily reported on Saturday.
The demand for the dollar rose against the Lebanese lira, forcing Banque du Liban to cover for that, according to the daily.
On Thursday, Bteish who is part of the Free Patriotic Movement's bloc in government, lashed out at Central Bank Governor Salameh's “financial engineering” tactics.
“So far we have not seen a comprehensive report that clarifies the operations that the central bank has conducted under the 'financial engineering' label. What are these operations? Why are they being conducted? What is the cost? Have they achieved their targets? And what is their impact on the economy and the treasury?,” said Bteish.
His positions were met with great resentment, “in view of the worsening financial and economic crises,” said the daily.
Sources who spoke on condition of anonymity, denounced the “fabricated campaign” against Salameh, “nothing justifies this rhetoric neither in timing nor in substance,” they said.
“The campaign would suspiciously send a very negative message abroad, especially to the international donors or those involved in the CEDRE Conference,” they said.
Political sources said everyone is waiting for President Michel Aoun to correct the position of a minister from his own FPM Movement, mainly that Salameh had visited the presidential palace less than 48 hours ago.
According to al-Joumhouria, the Governor has expressed reservation about two names proposed for the post of Vice-Governor since they lack consent of the financial and international authorities, and their appointment would affect the credibility of BDL towards the Arab and international community.
Source: Naharnet
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