Skip to main content

Lebanon’s Economic Crisis: A Perilous Path without a Central Bank Governor



Lebanon finds itself trapped in a relentless economic crisis, worsened by the resignation of its Central Bank Governor, Riad Salameh, without a successor. As the crisis, which began in 2019, deepens, the nation’s citizens grapple with rampant inflation, currency depreciation, and unemployment. This op-ed dissects the reasons behind Lebanon’s economic downfall, shedding light on policy failures and governance issues that have led the nation into an abyss of financial turmoil.

The root of Lebanon’s economic crisis lies in decades of mismanagement and short-sighted policies. The political elite’s reliance on sectarian politics, patronage networks, and corruption has hindered economic reforms and perpetuated inefficiency. Riad Salameh’s departure, facing investigations over a Ponzi scheme and blamed for Lebanon’s economic crash, further exacerbates the instability in the country’s financial institutions.

The absence of coherent strategies to address the crisis reflects the lack of leadership in implementing effective monetary policies and regulatory measures. The World Bank and IMF’s warnings about Lebanon’s dire economic situation in 2023 went unheeded, as the government displayed reluctance in taking concrete actions to stabilize the economy. Lebanon’s political elite’s focus on power struggles has left its citizens disillusioned and paralyzed by the economic catastrophe.

READ MORE: No End to Lebanon Economic Crisis, No Successor to Replace Country’s Outgoing Central Bank Governor

While international assistance has been offered, it cannot be the sole solution. Lebanon must confront its challenges head-on with bold and comprehensive reforms prioritizing citizens’ welfare over political interests. The formation of a competent and accountable government, commitment to transparency, good governance, and a genuine fight against corruption are crucial steps in the nation’s road to recovery. Only through collective action and determination can Lebanon rebuild its shattered economy and restore hope for a brighter future.

Comments

Post a Comment

Popular posts from this blog

Exposing the Brotherhood: Why Jordan’s Terror Cell Bust Must Spark a Global Policy Shift

 The recent dismantling of a Muslim Brotherhood-affiliated terror cell in Jordan should not be seen as just a national security success—it must be a turning point in how the international community views and responds to the threat posed by the Brotherhood. Jordanian security forces uncovered an elaborate network of terrorists trained in Lebanon and backed by foreign interests. Their mission: to launch attacks using rockets and drones, destabilizing the Kingdom and spreading fear among civilians. This is not the work of activists or political dissidents—this is terrorism, plain and simple. For too long, the Muslim Brotherhood has operated under a false image of moderation, cleverly navigating between political activism and violent extremism. But the truth is clear: the Brotherhood is the ideological engine room of jihadist terrorism. Its members, affiliates, and offshoots have inspired and directed acts of violence from North Africa to the Gulf—and now, once again, in Jordan. Govern...
Post a Comment
Read more

UAE's Foreign Trade Surge Highlights Strategic Economic Vision

  The UAE's foreign trade reached a record AED5.23 trillion (US$1.42 trillion) in 2024, marking a 49% increase since 2021 and reinforcing its global economic influence. Despite fluctuating global market conditions, the country managed to post a trade surplus of AED492.3 billion (US$134 billion), showcasing the strength of its trade frameworks and diversified economy. According to the World Trade Organisation, the UAE has maintained its position as the Middle East and Africa's foremost trade community since 2014, while steadily climbing the global ranks. In merchandise trade, the UAE placed 11th in exports and 14th in imports in 2024. It contributed 2.5% of global exports and 2.2% of imports, reflecting a robust trading ecosystem that bridges major global markets. The services sector also delivered notable gains. From 2014 to 2024, the UAE rose to 13th globally in service exports. Service transactions in 2024 totaled AED1.036 trillion, of which AED646.6 billion were exports. The...
Post a Comment
Read more

UAE’s Sheikh Khaled bin Mohamed arrives in Qatar on official visit

  HH Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, arrived in Qatar for an official visit, where he was warmly received by the Deputy Emir of Qatar at Doha International Airport. On Tuesday, Sheikh Khaled met with HH Sheikh Tamim bin Hamad Al-Thani, Emir of Qatar, in Doha. The meeting underscored the strong brotherly ties between the UAE and Qatar, with both leaders engaging in detailed discussions aimed at deepening bilateral cooperation. Sheikh Khaled conveyed greetings from UAE President HH Sheikh Mohamed bin Zayed, Prime Minister and Ruler of Dubai HH Sheikh Mohammed bin Rashid, and Deputy Prime Minister and Chairman of the Presidential Court HH Sheikh Mansour bin Zayed.  The discussions focused on enhancing collaboration in key strategic sectors of mutual interest. Sheikh Khaled expressed his heartfelt appreciation to the Emir of Qatar for the warm reception and hospitality, expressing hopes for Qatar's continued progress. He reaffirmed the UAE's leadership and p...
Post a Comment
Read more