Demands for the resignation of the Governor of the Banque du Liban

Banque du Liban Governor Riad Salameh said Thursday he would step down if a court ruling was issued against him.

Salameh told Hadath TV that "the legal process is unjust" but he is ready for it and cooperates with the judiciary.

On Thursday, Lebanese Deputy Prime Minister Saadeh al-Shami called on Salameh to resign after France issued an arrest warrant against him as part of an investigation into fraud accusations.

"When a person in any country is accused of such crimes, he should not remain in a position of responsibility and should step down immediately," al-Shami told Reuters. "I think he should resign."

Salameh said he would appeal the arrest warrant.

Salameh, his brother and his aide are facing corruption investigations in Lebanon and at least five European countries, suspected of illegally seizing more than $300 million from Lebanon's central bank.

The World Bank said in a report on Tuesday that "the Lebanese economy is still in a state of sharp decline, and it is far from the path of stability, let alone the path of recovery."

"The failure of Lebanon's banking system and the collapse of the currency have led to the growth and dollarization of a monetary economy estimated at half of GDP in 2022," he said.

According to the report, the "circular monetary economy" is estimated at "$9.9 billion, or 45.7 percent of GDP," reflecting "a rapid shift towards hard currency cash transactions following a complete loss of confidence in the weak banking sector and in the local currency."

The World Bank warned that the monetary economy "threatens to compromise the effectiveness of fiscal and monetary policy, increase the possibility of money laundering, as well as increase informal economic activity, and encourage increased tax evasion."

Lebanon's political paralysis due to the presidential vacuum for more than six months is worsening the economic situation. The country is run by a caretaker government that is unable to make necessary decisions, including reforms required by the international community to provide support.

In addition, the inflation rate, according to the World Bank, reached 171.2%, in 2022, to be one of the "highest rates in the world."