Thread by @chehayebk

Central Bank Governor Riad Salameh: "I apologize for the journalists who cannot be among us today.

#Lebanon's Central Bank has worked in an difficult environment...we have kept the currency stable.

Salame: When the #Syria-n civil war started...growth declined from 8% to 2%.

Since 2012 we faced sanctions, impacting monetary flow into #Lebanon... we also had internal problems. We remember the two presidential gaps...

There were also difficulties in forming govts in Lebanon

Salame: Our last gov't deadlock lasted 9 months at a time where we needed reforms

#Lebanon

Salame also brings back Saad Hariri's resignation [from Riyadh] in 2017 as another setback on #Lebanon's economy.

#Lebanon Central Bank Governor Salame: "We then reached a high deficit in 2018...at at time where the economy needed investment for it to grow."

Salame also cited "systematic" rumors that had negative impacts on the markets

Salame: "Despite all this, #Lebanon's Central Bank was steadfast to play its role as enshrined in the Constitution", adding that it is to maintain economic confidence and monetary stability.

#Lebanon Central Bank Governor Riad Salame:

"If there are no dollars in the market, then there is no economy."

Salame: "Financial engineering helped but perhaps was misunderstood..."

He then explains how financial engineering in 2016 helped maintain financial reserves, and helped #Lebanon meet obligations for international banking

#Lebanon Central Bank Govn'r Riad Salame:

Whoever is calling for return of money used for financial engineering, then they are being inaccurate.

The details of this is on the central bank's website.

#Lebanon Central Bank Governor Salame:
We recently reached an exceptional period.

In September to November there was massive withdrawals from the central bank (Liras) as much as the past 3 years.

Salame: The situation is an exceptional one, b/c #Lebanon has a free market economy, & we believe it must remain that way.

In the past 27 years, the central bank set goals and policies that helped Lebanon despite the conditions that I mentioned earlier that are not helpful

Salame: We were able to secure housing loans for 125,000 homes...we were able to secure billions for tourism, alternative energy, things related to the environment. This all created job opportunities and economic activity in the country.

#Lebanon

#Lebanon Central Bank Governor:

In these exceptional circumstances, the central bank's primary goal is to maintain the stability of the Lebanese lira.

#Lebanese Central Bank Governor Riad Salame refuses "any form of a haircut" - said that it doesn't work and that it's not within the powers of the central bank to implement such a thing.

Talks of a haircut has been of much discussion over the past week.

Salame discusses requests made to the banks to - generally speaking - take measured actions that eases consumers but also takes into consideration the exceptional situation

[Not sure how that will go now that the bank employees will be on strike but yeah]

#Lebanon

Central Bank Governor Riad Salame:

"The banks in #Lebanon have money abroad, in the state, in the private sector...and the banks have provided loans to the private sector some 110% of the economy..."

"The central bank has given more than it has taken from the banking sector"

Salame: The central bank has taken important initiatives to combat money laundering and helped the government to combat tax evasion

#Lebanon

Central Bank Governor Riad Salame is now going through the central bank's efforts to help banks and the state combat corruption and financial crimes and so on ...

#Lebanon

Salame: "We are talking about situation where there could be capital control. This is wrong.

The central bank does not have the power to do this, nor would it be willing. It's not there, & it won't be"

Explains #Lebanon needs "freedom" of capital flow, esp w/ diaspora/FDI etc

#Lebanon Central Bank Governor Riad Salame:

The Central Bank is indeed in the service of all Lebanese, and we work within the law. We have our initiatives and our policies.

/end

Oh wait he's talking "4 questions"

Salame: The reserve of the central bank without gold, which we published... we publish twice a month... is $23 billion includes Eurobonds."

#Lebanon

Salame on why he says lira is stable when there is informal rates & whether he is implementing the US gov't sanctions:

"I implement policies that are in the beenfit of #Lebanon... And the central bank is trying to protect Lebanon in regional circumstances outside of our control"

Salame: In these circumstances that we approach these circumstances objectively circumstances...we can't act like normally as if there is nothing going on.

We want to maintain stability, and possibly through our efforts and goals to let #Lebanon relaunch itself

Journalists ask as Salame rushes out:

Who is targeting the central bank?

Is people's money safe?

#Lebanon

/actual end