Report: France Advises Against ‘Laying-Off’ Salameh
France reportedly advises Lebanon against any “reckless” move after allegations the “authority” plans to dismiss the country’s central bank governor from his post over the deteriorating financial conditions, al-Joumhouria daily reported on Saturday.
According to information obtained by the daily, France made a “direct” intervention on the issue of “dismissing the governor of the Central Bank (Riad Salameh),” advising Lebanon against “such an impulsive” move.
The information however did not make clear whether the French position exclusively expresses its own, or whether it reflects the positions of other countries as well, namely the United States of America, added al-Joumhouria.
Reports emerged lately that the Cabinet could look into laying off Salameh, amid accusations he contributed to Lebanon's endless borrowing and ballooning sovereign debt, leading to the country's first ever default in March.
On Friday, PM Hassan Diab criticised the central bank and called on Salameh to "come forward to announce the honest truth to Lebanese".
He urged the governor, who has held the post since 1993, to explain his plans and when the exchange rate would stop rising.
Central bank losses from the start of the year to mid-April have reached $7 billion, including $3 billion in the past four weeks alone, Diab said.
The premier said a "neutral international company" had been tasked to audit the central bank's books, without giving a name.
Salameh's supporters credit him for stabilising the Lebanese pound for more than two decades, in the wake of the country's 1975-1990 civil war.
But his detractors accuse him of having contributed to Lebanon's endless borrowing and ballooning sovereign debt.
In recent months, the Lebanese pound has plummeted in value from around 1,500 pounds against the US dollar to almost 3,800 on the parallel market.
Source: Naharnet, Agence France Presse
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