The cooperation between the central bank and the government has secured revenues for the government exceeding 20 trillion lira last August, which increased to around 25 trillion in September, according to acting governor of the Central Bank of Lebanon, Wassim Mansouri, in an interview with "Al-Sharq" television. He noted a rise in foreign reserves in the country. In the interview, conducted on the sidelines of the International Monetary Fund meetings in Marrakech, Morocco, he warned that the country will reach a stage "which may be in just a few months or more, where the deficit will appear, and it will translate into the stopping of some services," refusing to discuss the nature of these services "because it is determined by the government."
Last August, the central bank decided to pay public sector salaries in dollars at an exchange rate of approximately 85,500 lira per dollar. Mansouri pointed out that "the draft budget for 2023 included a state deficit of 46 trillion lira, which exceeds 24% of the gross domestic product," indicating that foreign currency reserves in Lebanon "are currently witnessing an increase," without specifying the amount of this increase, stating that they "have not decreased since August 1, but rather that state revenues in foreign currencies are increasing these reserves." However, he confirmed that these reserves "will not be touched," urging the state to rely on "its internal revenues."
Regarding the internal situation, Mansouri considered it "stable, if we set aside the issue of banks," and "one can speak of a relatively acceptable stability," reiterating the call for reform of the banking system, without which economic reform cannot be discussed.
On the reforms related to the IMF program, he stated that the political decision-making mechanism in Lebanon is "complex," and that the situation in the country today is "more difficult due to the absence of a president, and because the government is a caretaker government," hence, "it is difficult to say that there has been progress on this front." Mansouri confirmed that the decision to not finance the state either in lira or dollars is "irreversible," considering it a "reformative" measure, and that neither the government nor the Ministry of Finance can oppose it. "On the contrary, there is currently close cooperation between the central bank, the government, and the Ministry of Finance to ensure the success of this direction, and not to pressure for a change."
