BEIRUT, April 4 (Xinhua) -- Lebanon's newly appointed central bank governor, Karim Soueid, pledged on Friday to restore confidence in the financial sector and implement necessary reforms during the official handover ceremony at the central bank.

"Our focus will be on rebuilding trust in the financial sector, introducing incentives, and reviving economic activity through a legitimate and well-regulated banking system," he said.

He emphasized the need to strengthen commercial banks' capital and ensure deposit repayments, adding that banks unwilling to gradually increase their capital should merge with other institutions. Meanwhile, he stressed that the central bank must lead a broader restructuring of the banking sector.

The governor also vowed to combat illicit financial activities, including money laundering and terrorism financing.

Marking a shift in the bank's communication strategy, he declared: "From now on, the central bank will adopt a silent observer stance, refraining from media interviews and communicating with the public solely through written statements and economic reports."

Outgoing Acting Governor Wassim Mansouri extended his best wishes to Soueid, expressing confidence that the bank is in capable hands.

Mansouri highlighted key reforms under his tenure, particularly the historic decision to halt state financing in line with monetary regulations. "Our sole motive has been the public interest. This reform was crucial in mitigating economic collapse," he stated.

He also defended the controversial decision to shut down Sayrafa, the central bank's exchange platform, despite concerns about exchange rate volatility. "We managed to control the money supply in collaboration with the government," he explained, noting that the central bank's foreign currency reserves increased and that a full audit of the country's gold reserves was conducted.

On depositors' funds, Mansouri stressed that the issue extends beyond the central bank and requires a comprehensive government plan approved by the parliament. He further noted that the central bank successfully reinstated relationships with correspondent banks and shielded Lebanon's financial sector from the repercussions of being placed on the Financial Action Task Force's grey list.

Mansouri served as the acting head of the central bank following former governor Riad Salameh's departure in July 2023 amid charges of money laundering, embezzlement, and financial misconduct in Lebanon and multiple European countries.

Soueid was elected as the new central bank governor on March 27, with 17 out of 24 votes. Enditem

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