Karim Souaid appointed as Lebanon’s Central Bank Governor

BEIRUT — Karim Souaid, a Syriac Maronite, has been appointed as Lebanon’s new Central Bank Governor, a critical step in efforts to rebuild the nation’s collapsing economy. The appointment followed months of intense deliberations, with reports suggesting US influence played a role, deepening political tensions in the country.

In Lebanon, the selection of top officials is rarely smooth. The country recently endured over two years of political stalemate before electing a president, followed by challenges in appointing a prime minister. Now, attention has shifted to the leadership of the central bank, a key institution in Lebanon’s fragile financial system.

Despite political divisions, Souaid’s appointment was confirmed by the cabinet. Prime Minister Nawaf Salam, announcing the decision, called on the new governor to prioritize negotiations with the International Monetary Fund (IMF), implement banking sector reforms, strengthen banking secrecy laws, and focus on safeguarding depositors’ rights.

“The most important thing,” Salam emphasized, “is that the central bank governor must adhere to the government’s financial reform policies outlined in the ministerial statement.”

Both Salam and President Joseph Aoun, a Syriac Maronite, have pledged to advance urgent economic reforms to unlock vital international aid. The financial crisis, worsened by recent conflicts between Israel and Hezbollah, has further exacerbated Lebanon’s economic struggles.

Karim Souaid, an expert in wealth management, is expected to oversee the restructuring of the banking sector and address financial losses stemming from Lebanon’s 2019 financial collapse. That crisis obliterated the savings of millions, devastated the national currency, and triggered an economic meltdown that continues to affect the country profoundly.