Salameh: My Conscience is Clear, Campaign against Me is Political

Central Bank Governor Riad Salameh has said that his conscience is clear despite the flurry of accusations against him.

In an interview with Asharq al-Awsat newspaper published Friday, Salameh said the circulars he has been issuing are aimed at "easing the severity of the crisis and averting the major collapse."

Salameh explained that he is seeking to rein in the currency exchange black market, noting that the central bank’s measures have helped restore 35% of the value of the Lebanese lira.

He charged that the criticism leveled against him is “politically motivated” and “rooted in interests in the black market.”

"Some sides were particularly bothered that the recent measure has eliminated the black market and allowed Sayrafa to be the main platform whereby everyone would have to abide by the rate it sets," Salameh said.

Asked whether the measure will help maintain the Lebanese pound at 20,000 to the dollar, he replied: "The market will do the talking. We will not intervene to introduce a fixed exchange rate. We will let developments take their course in the market."

"We will be around to prevent the recurrence of severe fluctuations," he added. "The Sayrafa platform now has the monetary ability to intervene in dollars" to thwart any major drop in the pound’s value, he said.

Salameh also revealed that should an IMF program be reached and should Lebanon commit to it, then other countries may join the bailout "and we may secure 12-15 billion dollars, which is enough for Lebanon to recover."

Asked how long Lebanon will need to overcome its crisis, Salameh said: "The sooner reforms are implemented, the sooner the crisis will end."

"Trust is the key factor that will restore funds and lead to the economic recovery," he stressed to Asharq al-Awsat.

He also denied claims that the easing of the currency fluctuation is tied to the parliamentary elections.

"The government's main concern at the moment is combating inflation that is impoverishing the people," he stated. "It is not thinking about the elections and political gains. It is focusing on approving a state budget that would attract confidence and, most importantly, lead to negotiations with the IMF."

Furthermore, Salameh rejected accusations that the central bank has spent the savings of depositors.

"We do not own the savings in the first place," he stated. "The major loss in the banking sector is blamed on the halt in payments. The banks had a huge eurobond wallet that they lost. These were depositor funds that they directly employed in service of the state."

Asked if the state could resort to gold reserves to end the crisis, Salameh stressed that a law is in place that bars such a move. "We are committed to this law," he said. "Even if a serious reform program is not approved, the gold reserves must not be touched at any cost."

Salameh declared: "No one envies my position, but I am here and my conscience is clear."

He said “political interests” have led to the campaign that has firmly held him responsible for the crisis.

He also noted that all other factors have been taken out of the equation and only the central bank has been blamed. "This does not make sense," he said. "They want to turn me into a scapegoat."