- 27
- Mar
- 2025
During a session held at Baabda Presidential Palace, chaired by President Joseph Aoun, the Cabinet appointed Karim Souhaid as Governor of the Lebanese Central Bank (BDL). The decision followed a ministerial vote, with Souhaid securing 17 votes out of 24 from the Lebanese government ministers. Despite strong opposition from Prime Minister Nawaf Salam and his allies, the vote was in favor of Souhaid. He will take over the governorship of BDL from acting Governor Wassim Mansouri, who has been serving in the role since the term of the former Governor, Riad Salameh, ended on July 31, 2023.
Under the provisions of Article 18 of the Money and Credit Law, the governor of BDL is appointed for a six-year term through a decree issued by the Cabinet, based on a proposal from the minister of Finance. Thus, Prime Minister Salam must sign the decree appointing Souhaid as Governor of BDL, despite his opposition, since two-thirds of the Cabinet approved it.
The governor of the Central Bank is the key figure in shaping monetary policies and, alongside the members of the Central Council, is responsible for regulating and overseeing the banking sector. As such, he will play a pivotal role in the restructuring of banks and in engaging with international financial institutions to develop a comprehensive economic recovery plan.
The BDL governor has extensive authority to manage the Central Bank and oversee its operations. He is responsible for implementing the Monetary and Credit Law and executing Central Council decisions, while ensuring monetary and banking stability. The law explicitly designates the governor as the legal representative of the bank, with the authority to sign all documents, contracts and agreements on its behalf. He also has the authority to initiate legal actions and take all necessary precautionary and executive measures, including securing real estate collateral.
BDL was established in 1963 and began operations on April 1, 1964. It is responsible for managing monetary policy, ensuring the stability of the Lebanese pound, and regulating the country’s banking sector. Since its founding, the bank has been led by several prominent figures who have shaped Lebanon’s financial policies over the decades.
The first Governor was Philippe Takla (1963–1967), who concurrently served as Minister of Foreign Affairs. A key moment during his tenure was the Intra Bank crisis. Following Takla, Elias Sarkis assumed the governorship from 1967 to 1976. Under his leadership, Beirut’s role as a regional financial center was strengthened, and institutions such as the Banking Control Commission and the Higher Banking Authority were established. Sarkis also worked to bolster Lebanon’s gold reserves held at BDL.
Michel Khoury served as BDL’s third Governor (1978–1985). During his tenure, Lebanon faced the 1982 Israeli invasion and the onset of a currency collapse, leading to a significant devaluation of the Lebanese pound. Edmond Naïm then took over the governorship from 1985 to 1991, confronting major challenges due to the country’s political, security and economic decline, along with a sharp drop in bank deposits and a rise in dollarization. Under his leadership, the Lebanese pound’s collapse became more pronounced, a trend that continued and worsened during Khoury’s second term (1991–1993) following the end of the Lebanese Civil War. Notably, First Deputy Governor Joseph Oughourlian intermittently served as Governor between 1963 and 1987 and played a key role in developing the Monetary and Credit Law.
In 1993, Khoury stepped down at the request of the late Prime Minister Rafic Hariri, allowing Riad Salameh to take over as BDL’s Governor. Unlike his predecessors, Salameh remained in office for 30 years, with his term renewed four times – making him the longest-serving Central Bank Governor in the world. His tenure began with a period of monetary stability, but by 2019, Lebanon had plunged into an unprecedented financial, monetary and banking collapse.
After the end of Salameh’s term, and to avoid a leadership vacuum, First Vice-Governor Wassim Mansouri assumed the role of Acting Governor in July 2023, remaining in office until the appointment of Karim Souhaid as BDL Governor. Mansouri’s tenure was marked by notable monetary stability: BDL halted state financing, ended all subsidy and advance schemes, and continued implementing circulars that enabled the repayment of a significant portion of depositors’ funds. In recent months, the scope of these circulars widened, allowing BDL under Mansouri’s tenure to repay nearly $3.6 billion in deposits. The Central Bank also succeeded in partially rebuilding its foreign currency reserves, which rose to $10.746 billion in the first quarter of 2025.
On March 27, 2025, the government appointed Souhaid as BDL’s Governor, entrusting him with addressing deep economic and financial challenges – chief among them, the restructuring of the banking sector and the resolution of depositors’ rights. In this context, recent statements by Finance Minister Yassine Jaber struck a reassuring tone, ruling out any recovery plan that would involve wiping out or writing off deposits.
Current efforts are focused on laying the foundation for a strategy that ensures the gradual repayment of deposits through an organized framework, with priority given to small depositors. Over time, the scope of reimbursements is expected to expand according to a defined timeline. In this context, Souhaid is expected to collaborate closely with his team to assess the health of the banking sector and propose a viable solution to resolve the depositors’ crisis – one that anchors economic recovery by preserving the financial system and restoring public confidence.
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