In a ceremony marking the transfer of power at Lebanon’s central bank, acting Governor Wassim Mansouri officially handed over his duties to his successor, Karim Souaid, who takes the helm amid the nation’s ongoing financial crisis.

Mansouri, who served as acting governor during some of the country’s most challenging years, expressed confidence in Souaid’s ability to lead.

“From everything we’ve heard about Souaid’s competence and integrity, I’m confident the central bank is in good hands,” Mansouri said at a joint press conference. “I wish him success as he navigates the challenges ahead.”

Reflecting on the past two years—which he described as the toughest in Lebanon’s history—Mansouri recalled the near-total constitutional vacuum and the increasing pressures brought on by the war. Under his leadership, the central bank made the historic decision to cease funding the state by relying on Lebanon’s Monetary and Credit Law. Mansouri emphasized that every decision made by the central bank was driven by the public interest.

“This reform was essential and helped limit the collapse,” he said.

A significant part of Mansouri’s tenure involved restoring financial stability and upholding the central bank’s independence.

“We managed to control the money supply, unify the exchange rate, and work toward stabilizing it,” he stated. He also credited the bank’s policy decisions with boosting foreign currency reserves and initiating a thorough inventory of the country’s gold holdings.

By the end of March 2025, Lebanon’s foreign currency reserves had increased by $2.2 billion, reaching a total of $10.727 billion, according to Mansouri. He also noted the decision made in August 2023 to shut down the Sayrafa platform, despite the risks it posed.

“We took decisive action to curb the waste associated with it, and through coordinated efforts with the government, we managed to stabilize the situation.”

Addressing concerns over depositors’ funds, Mansouri asserted that it was unacceptable for a central bank governor to be unable to provide clear answers about their fate. However, he stressed that resolving the issue was not solely the responsibility of the central bank, but part of a broader government strategy that still required parliamentary approval.

Mansouri also expressed regret over Lebanon’s inclusion on the FATF’s gray list, emphasizing that neither the central bank nor the banking sector was to blame.

In his remarks, Souaid, the newly appointed governor, thanked Lebanon’s political leaders—including the President, Prime Minister, and Speaker of Parliament—for their support. He also lauded the central bank’s staff for their efforts in maintaining public service during a tumultuous period.

“I am committed to upholding Lebanon’s constitution and ensuring that the central bank remains an independent institution, free from political influence,” Souaid said.

Souaid outlined his priorities, stressing that the central bank should not serve as a permanent financier of the state. He emphasized that repaying deposits, particularly for small depositors, must be the top priority.

“The banks, the central bank, and the state must all share responsibility for addressing this issue,” he said.

Looking ahead, Souaid pledged to rebuild trust in Lebanon’s central bank, control inflation, and recapitalize the banking sector.

“All banks must inject new capital, and those that can’t should consider merging,” he said.

He also noted that the central bank would adopt a more measured approach in its communications, relying primarily on official statements and reserving interviews for formal occasions.

Furthermore, Souaid stressed the importance of accountability, stating that the central bank would continue to conduct forensic audits and impose penalties on those involved in misconduct. He also vowed to work closely with international organizations to ensure Lebanon’s financial stability.

“There should be no conflicts of interest or undue beneficiaries in this sector,” he declared, adding that commercial banks must be recapitalized and depositors’ funds restored.

Finally, Souaid reiterated that the central bank would intensify its efforts to combat money laundering and terrorist financing, with the ultimate goal of eliminating Lebanon’s shadow economy and restoring credibility to the financial system.