Vacuum looms as Cabinet fails to select successor to Lebanon central bank governor 

Wassim Mansouri, first vice governor of Lebanon's central bank, leaves with two other vice governors, after meeting with Lebanon's caretaker Prime Minister Najib Mikati, in Beirut. (File/Reuters)
Short Url
Updated 27 July 2023
Follow

Vacuum looms as Cabinet fails to select successor to Lebanon central bank governor 

  • Economic expert fears vacancy may last for long time until election of new president, formation of Cabinet

BEIRUT: Lebanese Caretaker Prime Minister Najib Mikati said on Thursday that he was “not afraid of significant jumps in the exchange rate and that the money supply could be absorbed quickly.”

His remarks came after the Cabinet on Thursday failed to meet to choose a successor to long-time central bank Gov. Riad Salameh.

The Cabinet session was canceled minutes after it was set to start because there were not enough ministers to meet the quorum.

The session lost quorum as ministers from the armed party Hezbollah and its Christian ally the Free Patriotic Movement did not attend.

Mikati had called for the Cabinet session to discuss financial issues and to look into ways to avoid a leadership vacuum at the bank.

The bank could be leaderless from Monday as the country heads into a fifth year of financial turmoil.

Mikati and Parliament Speaker Nabih Berri have led efforts to name a new governor.

Hezbollah and the FPM have, however, rejected the moves, saying a caretaker Cabinet had no right to take such decisions.

Ministers affiliated with the Progressive Socialist Party and the Amal Movement, in addition to independent ministers, attended the session.

Mikati replaced the session with a “consultative meeting” — as he described it — with the attending ministers.

In a statement published by his media office, Mikati affirmed that “today, we had the chance to temporarily address a file related to the financial and monetary situation.

“However, the political calculations of the concerned parties within the government have priority over others.”

Mikati called on “every party to bear the responsibility of its decision.”

Mikati urged MPs to “assume their responsibility and elect a new president for the country as soon as possible, so the work of constitutional institutions can be regulated again.”

He said that the current Cabinet was not responsible for the presidential vacuum and was trying during its caretaker period to manage public affairs.

Salameh — the 72-year-old Maronite Christian — is set to leave office next Monday, after serving as governor for 30 years with Lebanon’s economy in tatters and facing charges of embezzling public funds, which he denies.

The looming prospect of a leadership vacuum at the bank raises fears of further state fragmentation and reflects wider divisions that have also left the presidency vacant and the country without a fully empowered Cabinet for over a year.

Salameh’s term was renewed several times by successive cabinets.

First Vice Gov. Wassim Mansouri, of Shiite background, is expected to succeed Salameh as of Tuesday amid the presidential vacuum that has been ongoing since last October in Lebanon.

The four vice governors, who represent other sects, have threatened to resign if no new successor to Salameh is appointed.

Mikati said: “In case of vacuum, the first vice governor takes over. If he fails to do so, the second vice governor must assume the position.”

Mikati said that he relies “on everyone’s awareness to help the four vice governors and explore ways of securing temporary funding or a temporary loan until the situation is stabilized.”

Lebanon has witnessed no longer than one or two weeks of leadership vacuum at the central bank in its recent history.

Economic expert Louis Hobeika told Arab News: “Today, we fear that this vacancy might last for a long time until the election of a new president and the formation of a new Cabinet.”

The current legal status requires the first vice governor to take over, Hobeika added.

“The decisions will be taken during the meeting of the central council and implemented by the vice governor.”

Hobeika said: “Some people argue that the vice governor will act in caretaker capacity. But I say that this is an institution and not a Cabinet, and therefore, he will not act as a caretaker governor but will manage the work as usual.”  

He added that the bank’s central council includes the four vice governors, the director-general of the Ministry of Finance, the director-general of the Ministry of Economy and the government commissioner to the central bank.

The vice governors fear the large responsibility that they will have to assume amid the atmosphere of political intimidation and the pressure put on them.

Hobeika believes that their resignation, however, will not be accepted.

The vice governor might appoint Salameh as his adviser in the next phase, he added.

On whether the financial market might witness a setback after Salameh’s departure, Hobeika said: “The dollar exchange rate is not linked to Salameh’s presence or absence but to actors with interests. If those actors wanted to mess up the current situation, they could.”


A ceasefire holds in Syria but civilians live with fear and resentment

Updated 58 min 26 sec ago
Follow

A ceasefire holds in Syria but civilians live with fear and resentment

  • The Arab-majority population in the areas that changed hands, Raqqa and Deir Ezzor, have celebrated the SDF’s withdrawal after largely resenting its rule
  • But thousands of Kurdish residents of those areas fled, and non-Kurdish residents remain in Kurdish-majority enclaves still controlled by the SDF

QAMISHLI: Fighting this month between Syria’s government and Kurdish-led forces left civilians on either side of the frontline fearing for their future or harboring resentment as the country’s new leaders push forward with transition after years of civil war.
The fighting ended with government forces capturing most of the territory previously held by the Kurdish-led Syrian Democratic Forces in the country’s northeast, and a fragile ceasefire is holding. SDF fighters will be absorbed into Syria’s army and police, ending months of disputes.
The Arab-majority population in the areas that changed hands, Raqqa and Deir Ezzor, have celebrated the SDF’s withdrawal after largely resenting its rule.
But thousands of Kurdish residents of those areas fled, and non-Kurdish residents remain in Kurdish-majority enclaves still controlled by the SDF. The International Organization for Migration has registered more than 173,000 people displaced.
Fleeing again and again
Subhi Hannan is among them, sleeping in a chilly schoolroom in the SDF-controlled city of Qamishli with his wife, three children and his mother after fleeing Raqqa.
The family is familiar with displacement after the years of civil war under former President Bashar Assad. They were first displaced from their hometown of Afrin in 2018, in an offensive by Turkish-backed rebels. Five years later, Hannan stepped on a land mine and lost his legs.
During the insurgent offensive that ousted Assad in December 2024, the family fled again, landing in Raqqa.
In the family’s latest flight this month, Hannan said their convoy was stopped by government fighters, who arrested most of their escort of SDF fighters and killed one. Hannan said fighters also took his money and cell phone and confiscated the car the family was riding in.
“I’m 42 years old and I’ve never seen something like this,” Hannan said. “I have two amputated legs, and they were hitting me.”
Now, he said, “I just want security and stability, whether it’s here or somewhere else.”
The father of another family in the convoy, Khalil Ebo, confirmed the confrontation and thefts by government forces, and said two of his sons were wounded in the crossfire.
Syria’s defense ministry in a statement acknowledged “a number of violations of established laws and disciplinary regulations” by its forces during this month’s offensive and said it is taking legal action against perpetrators.
A change from previous violence
The level of reported violence against civilians in the clashes between government and SDF fighters has been far lower than in fighting last year on Syria’s coast and in the southern province of Sweida. Hundreds of civilians from the Alawite and Druze religious minorities were killed in revenge attacks, many of them carried out by government-affiliated fighters.
This time, government forces opened “humanitarian corridors” in several areas for Kurdish and other civilians to flee. Areas captured by government forces, meanwhile, were largely Arab-majority with populations that welcomed their advance.
One term of the ceasefire says government forces should not enter Kurdish-majority cities and towns. But residents of Kurdish enclaves remain fearful.
The city of Kobani, surrounded by government-controlled territory, has been effectively besieged, with residents reporting cuts to electricity and water and shortages of essential supplies. A UN aid convoy entered the enclave for the first time Sunday.
On the streets of SDF-controlled Qamishli, armed civilians volunteered for overnight patrols to watch for any attack.
“We left and closed our businesses to defend our people and city,” said one volunteer, Suheil Ali. “Because we saw what happened in the coast and in Sweida and we don’t want that to be repeated here.”
Resentment remains
On the other side of the frontline in Raqqa, dozens of Arab families waited outside Al-Aqtan prison and the local courthouse over the weekend to see if loved ones would be released after SDF fighters evacuated the facilities.
Many residents of the region believe Arabs were unfairly targeted by the SDF and often imprisoned on trumped-up charges.
At least 126 boys under the age of 18 were released from the prison Saturday after government forces took it over.
Issa Mayouf from the village of Al-Hamrat, was waiting with his wife outside the courthouse Sunday for word about their 18-year-old son, who was arrested four months ago. Mayouf said he was accused of supporting a terrorist organization after SDF forces found Islamic chants as well as images on his phone mocking SDF commander Mazloum Abdi.
“SDF was a failure as a government,” Mayouf said “And there were no services. Look at the streets, the infrastructure, the education. It was all zero.”
Northeast Syria has oil and gas reserves and some of the country’s most fertile agricultural land. The SDF “had all the wealth of the country and they did nothing with it for the country,” Mayouf said.
Mona Yacoubian, director of the Middle East Program at the Center for Strategic and International Studies, said Kurdish civilians in besieged areas are terrified of “an onslaught and even atrocities” by government forces or allied groups.
But Arabs living in formerly SDF-controlled areas “also harbor deep fears and resentment toward the Kurds based on accusations of discrimination, intimidation, forced recruitment and even torture while imprisoned,” she said.
“The experience of both sides underscores the deep distrust and resentment across Syria’s diverse society that threatens to derail the country’s transition,” Yacoubian said.
She added it’s now on the government of interim Syrian President Ahmad Al-Sharaa to strike a balance between demonstrating its power and creating space for the country’s anxious minorities to have a say in their destiny.