Lebanon is grappling with renewed protests following a collapse in its currency, soaring inflation and spiraling unemployment, but its dire financial straits have only been worsened by a shutdown to rein in the Coronavirus pandemic.
The growing unrest threatens to tip Lebanon into more serious conflict, even as Beirut looks to pass an economic rescue plan and enter talks with foreign creditors after defaulting on hefty debt obligations last month.
An accumulation of bad financial decisions, inaction and entrenched corruption and cronyism, were the cause of Lebanon’s crisis.
Lebanon’s Central Bank governor defended himself Wednesday against scathing criticism, claiming there is a “systematic campaign” meant to hold him responsible for the country’s recent financial crisis and the collapse of the national currency.
Speaking in an hour-long video conference, Gov. Riad Salameh, who has held the post since 1993, said he did what he had to do to maintain Lebanon’s monetary stability in the face of various crises over the past years. He blamed politicians for reneging on repeated promises of reform.
The speech came after a day of violence, when hundreds of protesters in the northern city of Tripoli clashed with troops until late Tuesday night, leaving several injured on both sides in some of the most serious riots triggered by the economic crisis spiraling out of control amid a weeks-long virus lockdown.
Salameh was responding to accusations made by Lebanese Prime Minister Hassan Diab last week in which he held the governor responsible for the downward spiral and accused him of pursuing “opaque” policies that sent the pound crashing against the dollar.
