Lebanese Monetary Policy 2012: Central Bank to Keep Stable Currency

Interview with H.E. Riad Salameh, Governor of the Central Bank of Lebanon

Are the monetary policies of the Central Bank going to change because of the regional events? What is the outlook for 2012?

The Central Bank of Lebanon is maintaining the same monetary policy, so we are looking at a stable currency. Of course in Lebanon we deal the U.S. dollar against the Lebanese pound, and this rate will remain stable. The markets are freezing the interest rates and they are stable. They are also at a historical low and the Central Bank in Lebanon will ensure they remain so for 2012.

We have taken all the necessary measures to protect the Lebanese banking sector‘s reputation so that no one can accuse us of using it to turn around sanctions. We have also taken all the commercial precautions by asking the banks to have the necessary general provisions for the worst case scenario. We are looking at a good year for Lebanon’s banking sector this year.

Are you concerned about 2013, as many say this will be the next recession in the United States and there are concerns about Europe as well?

I think the anticipation of negative growth worldwide is already discounted in the economy and we might always be surprised by a different outcome. I hope so.