Cen.bank governor: Lebanon needs solution in days to avoid economic collapse

Salameh met with President Aoun on Monday to discuss the monetary situation in the country. (File photo: Reuters)

Lebanon needs a political solution to the country’s crisis in days to regain confidence and avoid a future economic collapse, Central Bank Governor Riad Salameh told Reuters on Monday.

He said a CNN headline on Monday did not reflect what he said in an interview with the broadcaster.

“I am not saying that we are going to have a collapse in a matter of days. I am saying we need to have a solution in a matter of days to regain confidence and avoid collapse in the future.”

Salameh said that the local currency peg to the dollar will be maintained and that when banks in Lebanon re-open, “there is no capital control and no haircut.”

Earlier on Monday, the central bank announced that it has provided the necessary liquidity for paying salaries, the country’s banking association was quoted as saying by Reuters.

Lebanese banks are determined to secure salaries for public and private sector workers, the Association of Lebanese Banks said.

On Friday Salameh met with President Michel Aoun to discuss the monetary situation in the country.

Since October 17, a majority of Lebanese went to the streets across the coutry to protest against corruption and press their demands for a radical overhaul of their country’s sectarian political system.
 

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Last Update: Wednesday, 20 May 2020 KSA 09:54 - GMT 06:54
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