BDL vice governors submit comprehensive financial plan to MPs
The Central Bank vice governors sent Thursday a preliminary comprehensive plan to the Parliament's Administration and Justice Committee.
The plan "enables the correction of the monetary policy, and starts the recovery process. Its major objective is to float the exchange rate in a managed manner on an internationally recognized exchange platform, so that it reflects the real value of the Lebanese Pound," Wassim Manssouri, Bachir Yakzan, Salim Chahine, and Alexander Mouradian said.
The four vice governors added that the expected timeline of the plan is over six months.
The term of embattled three-decade chief Riad Salameh ends this month with no successor in sight.
The central bank governor in Lebanon is named by cabinet decree for a six-year mandate that can be renewed multiple times, based on the finance minister's recommendation.
If the position is vacant, the law stipulates that the first vice-governor take over.
"The government and the Parliament shall commit to approving laws to rebuild trust and secure additional revenues from its budgetary framework to repay the newly outstanding loan, through the following three steps:
-Budget Review
-Enactment of Capital Control Law, Bank Restructuring and Resolution Law, and Gap Resolution Law, with a protection of customers' deposits.
-A coordination between BDL, the Parliament, and the Government to improve the depth of the Foreign Exchange Market " the vice governors said.
They added that BDL will intervene in the market during the coming few months to stabilize as much as possible a "unified exchange rate" on Sayrafa and will provide its best effort to secure a smooth transition to a "Managed" Floating Exchange Rate Platform.
Source: Naharnet
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