Lebanon: Senior Central Bank official arrested

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In Lebanon, when the national currency lost 200% of its value against the dollar, the authorities launched a vast campaign to fight speculation on the black market. 

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From our correspondent in Beirut,  Paul Khalifeh

On Thursday May 14, the financial prosecutor ordered the arrest of Mazen Hamdane, the head of monetary operations at the Banque du Liban.

After being heard at length by the investigators, the latter was escorted by the police to his office to recover certain documents before being arrested, Thursday, May 14. No charges have yet been brought against him.

Monetary speculation at the heart of the financial crisis

Last week, the prosecutor had arrested the president of the money changers' union, accused of monetary speculation which would have accelerated the collapse of the Lebanese pound against the dollar. Fifty-five money changers are behind bars as part of this investigation. Today, a dollar is worth 4,200 pounds on the black market, while the official rate is set at 1,500 pounds. The depreciation of the national currency caused prices to soar.

Informed sources indicate that the prosecutor is seeking to establish a link between the speculators and the head of the Central Bank. These arrests come after the relationship has deteriorated between the political authorities and the Governor of the Banque du Liban.

Prime Minister Hassan Diab has publicly denounced the measures taken by Riad Salamé, which have contributed to the shortage of dollars plaguing Lebanon, according to government circles. Hassan Diab criticizes the governor for his lack of transparency and cooperation with the executive, which last week approved a vast plan of economic and financial reforms.

► Read also  : The crisis in Lebanon takes a violent turn

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• Lebanon
• Economy
• Hassan Diab

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