Washington’s Bold Moves: Interfering in Lebanon’s Central Banker Selection

In light of the ongoing U.S.-led Israeli military operations in Lebanon, political dynamics are shifting dramatically following the recent election of Joseph Aoun as President and the appointment of Nawaf Salam as Prime Minister. The escalating American pressure on Lebanon is primarily aimed at undermining the influence of Hezbollah and its allies.

This article explores the various aspects of U.S. interference in Lebanon’s political landscape, particularly in relation to the Lebanese financial sector and the appointment of key positions in the government.

The Lebanese financial sector has long been vulnerable to U.S. pressure, and the ongoing discussions about appointing a new governor for the Central Bank of Lebanon are no exception. According to a report by Reuters, the U.S. has initiated interference in the Lebanese government’s decision-making process regarding this appointment.

• The U.S. seeks to curtail corruption and illicit financing related to Hezbollah through Lebanon’s banking system.
• This approach marks a significant shift in how Washington is dealing with Lebanon amidst a severe financial crisis.
• The Lebanese economy has faced a collapse over the past five years, exacerbating the pressure on its financial institutions.

With the election of a former army commander, who has the backing of Washington, as president, the new Lebanese government is working to fill critical vacancies, including that of the central banker. This position has been filled by an interim governor since July 2023, creating an urgent need for a permanent appointee.

In their investigations, Reuters cited three informed Lebanese sources, a Western diplomat, and a former official from the Trump administration, indicating that the U.S. is actively reviewing potential candidates for the central bank position. Furthermore, U.S. officials have reportedly met several candidates both in Washington and at the U.S. embassy in Lebanon.

During these meetings, candidates were questioned about their strategies to combat “terrorist financing” through Lebanon’s banking system and their willingness to confront Hezbollah. This scrutiny underscores the U.S. administration’s intentions regarding the future of Lebanon’s financial governance.

Despite numerous inquiries, the U.S. State Department, the White House, and Prime Minister Salam’s office have yet to provide comments on this situation. A spokesperson for the Lebanese presidency emphasized the importance of selecting a qualified individual for the central bank position, rather than focusing on foreign influences.

Analysts have interpreted the information leaked to Reuters by Lebanese officials as veiled threats aimed at deterring any objections to Washington’s nominees. This strategic leak seems to signal that dissenters may face repercussions, particularly concerning Hezbollah’s banking institution, Al-Qard Al-Hassan.

Meanwhile, the French presidency has expressed support for businessman and banker Samir Assaf as a candidate for the governorship of the Central Bank. Prime Minister Salam appears inclined to align with Paris on this appointment, especially since French President Emmanuel Macron has indicated a commitment to a significant role for Salam in Lebanon’s future.

Informed sources have revealed that during his upcoming visit to Beirut on the 28th of this month, President Macron plans to discuss a proposal for an international conference in Paris next July aimed at addressing the reconstruction of areas devastated by the U.S.-led Israeli attacks on Lebanon.

As Lebanon navigates these turbulent waters, the intricate web of international relations continues to shape its political and economic landscape. The involvement of external powers like the U.S. and France highlights the challenges Lebanon faces in establishing autonomy in its governance and financial systems.

The outcome of these developments could have far-reaching implications, not just for Lebanon, but for the broader Middle Eastern region as well. The interplay of local entities and international interests will undoubtedly influence Lebanon’s path forward in the coming months.