After 30 Years, Riad Salameh’s Term Ends

At midnight today, Riad Salameh’s 30 year term as Governor of Lebanon’s Central Bank officially comes to an end, with first Vice Governor Wassim Mansouri set to take over as interim governor. Riad Salameh was first appointed to the central bank governorship on August 1, 1993, then re-appointed in 1999, 2005, 2011, and 2017. Seen as a stable hand at the top of Lebanon’s financial system for most of his reign, the last 4 years have seen his reputation plummet as his signature 1,500 peg collapsed and billions of dollars were lost in the banking collapse.

Far from the sky-high heights of his reign, Salameh leaves office with him and his associates facing a myriad of troubles around the globe.

Riad Salameh is currently subject to multiple local and international investigations, with a Europe-wide $330 million illicit enrichment and alleged laundering case open against them and most of his properties in Lebanon seized pending the outcome of local investigations. He is also subject to an Interpol red notice, and has had his passports confiscated in Lebanon.

Under his leadership, the central bank managed to maintain a 1,500 LL-USD peg from 1997 to 2019, with few hiccups here and there. Salameh’s BdL prided itself on being independent of Lebanon’s rampant instability and chaos, standing as a lone beacon of competence among a battered and corrupt state. But this obviously proved to be false, with allegations of a decades-long ponzi scheme thrown at the governor since 2019. On his end, Salameh still holds on to the belief that he is a scapegoat for the overall failures of the Lebanese ruling class since 1990.

Lebanon’s executive vacuum has made appointing a new governor difficult, with first vice governor Wassim Mansouri set to take charge as interim governor until the situation can be resolved. At a press conference held today, Mansouri outlined that the central bank will need the cooperation of the government and parliament to right Lebanon’s financial ship.

For depositors who saw their money basically evaporate overnight, Salameh’s exit marks a symbolic yet unsatisfying victory, with the country’s financial future, and their frozen funds, still up in the balance. Far from his dreams of being the next president of the republic, Salameh leaves office with his fortune seized, his associates under investigation, and his reputation eviscerated.