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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.

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