Banque du Liban Confronts Campaigns: Protecting the Lira and Returning Deposits Are a Non-Negotiable Sovereign Priority

Banque du Liban issued the following statement:

"In response to what is being circulated in some newspapers known for their political leanings, Banque du Liban clarifies that it, and its governor, have no objective other than achieving a set of firmly established priorities: preserving monetary stability under all circumstances; working to return depositors’ funds in accordance with the mechanisms of the financial regularization law; restoring the health of the banking sector as a fundamental condition for economic growth; and strengthening the state’s public finances, including the stability of the national currency, so as to enable the state to fully meet all its obligations toward citizens and public sector employees.

The central bank stresses that it is committed to one agenda only: safeguarding monetary stability. It has worked continuously with the various relevant ministries, particularly the Ministry of Finance, and with all actors in the financial sector, to ensure a steady inflow of foreign currencies into the country and to preserve the stability of the national currency’s exchange rate. This is being done within rules and frameworks that do not compromise the disciplined policy adopted by the bank in protecting funds allocated to depositors and those belonging to the state, in a manner that ensures a sound balance between them.

The bank operates exclusively within the framework of the law, in coordination with the government, and in cooperation with the Ministry of Finance in a way that ensures the orderly conduct of fiscal and monetary policies. At this sensitive stage, it is keen to reaffirm its full commitment to the strict application of the regulations in force and to its duties expressly stipulated in Article 70 of the Code of Money and Credit, foremost among them 'safeguarding the soundness of the Lebanese currency.'

It remains self-evident to stress that the political stability the government is working toward is the foundation of any economic stability, and that progress on this path constitutes the decisive factor in restoring confidence, enhancing the effectiveness of monetary policies, stabilizing the national economy, and enabling the recovery of both the public and private sectors."