Lebanon Crisis Brings Mixed Legacy for Riad Salameh

FILE PHOTO: Lebanon's Central Bank Governor Riad Salameh reacts after a news conference at Central Bank in Beirut, Lebanon November 11, 2019. REUTERS/Mohamed Azakir
FILE PHOTO: Lebanon's Central Bank Governor Riad Salameh reacts after a news conference at Central Bank in Beirut, Lebanon November 11, 2019. REUTERS/Mohamed Azakir
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Lebanon Crisis Brings Mixed Legacy for Riad Salameh

FILE PHOTO: Lebanon's Central Bank Governor Riad Salameh reacts after a news conference at Central Bank in Beirut, Lebanon November 11, 2019. REUTERS/Mohamed Azakir
FILE PHOTO: Lebanon's Central Bank Governor Riad Salameh reacts after a news conference at Central Bank in Beirut, Lebanon November 11, 2019. REUTERS/Mohamed Azakir

Touted as the guardian of Lebanon’s monetary stability, he steered the tiny country's finances for nearly three decades, through post-war recovery and bouts of unrest.

Now, Lebanon’s central bank governor is being called a “thief” by some anti-government protesters who see him as a member of a corrupt ruling elite whose mismanagement has driven the country to the edge of bankruptcy.

The changing fortunes of Riad Salameh, a 69-year-old former investment banker, mirror the rise and fall of Lebanon’s post-war banking sector, which he personally oversaw, The Associated Presse reported.

Last year, as economic conditions worsened and Lebanon was engulfed in mass protests, banks began imposing limits on cash withdrawals and limits on transfers abroad that continue to deprive depositors of access to their savings. In recent weeks, the Lebanese pound — pegged to the dollar for more than two decades under Salameh — lost 60% of its value against the dollar on the black market.

Protesters rioted, hurling firebombs and smashing ATM machines. Metal barriers rose up around the banks.

“They are like thieves, hiding behind their fortifications,” said Ahmad Rustom, 46, a self-employed carpenter standing outside a local bank in Beirut recently. “The fact that they are fortifying means they don’t intend to give people their money back.”

At the center of this tumult is Salameh, one of the world’s longest-serving governors. Prime Minister Hassan Diab's government has singled him out, blaming the bank's “opaque policies" for the downward currency spiral over the past weeks.

Salameh has declined an AP request for an interview but defended himself publicly against what he described as a “systematic campaign” against the central bank, blaming successive governments for the crisis.

“Yes, the central bank financed the state, but it is not the one that spent the money,” Salameh charged in a televised speech.

In perhaps the starkest warning to Salameh, the head of cash operations at the central bank was charged earlier this month with violating banking laws and money laundering, allegations the central bank denied. The official, Mazen Hamdan, was later ordered released on bail.

Salameh’s supporters say he did his best to keep the economy afloat and is being made a scapegoat.

David Schenker, the US assistant secretary of state for Near Eastern affairs, has weighed in, saying Salameh has credibility and that Washington has “worked well” with him.

Nassib Ghobril, chief economist at Lebanon's Byblos Bank, the country's third-largest lender, said Salameh "used the tools at hand to maintain the currency stability for so long, despite the fact that only the monetary policy was functioning” in the country.

Salameh is credited with preserving financial stability at critical junctures.
In 2009, he became the first Arab central bank governor to ring the bell at the New York Stock Exchange.

“I hope that through my work I have benefited Lebanon and its banking sector but for sure this is not an individual effort but that of a team at the central bank,” he once said in an interview.

Successive governments, however, did little to enact reforms or improve Lebanon’s infrastructure, while continuing to borrow heavily, accumulating one of the world’s largest debts reaching $90 billion, or 170% of GDP.

With Lebanon in constant need of hard currency to cover its massive trade balance deficit — it exports way too little and imports almost everything —Salameh helped attract deposits to local banks by offering higher interest rates than those of international markets.

When the flow of hard currency dropped, beginning in 2016 — in large part because falling oil prices reduced remittances from Lebanese working in Gulf Arab nations — Salameh responded with a so-called “financial engineerings” debt policy. This encouraged local banks to obtain dollars from abroad by paying high interest rates, to keep the state's finances afloat.

This approach is what his detractors now say proved too costly for the country. An economic recovery plan recently adopted by the government showed that the central bank had $44 billion in losses over the past years, the result of losing financial operations.

In the months before anti-government demonstrations erupted last October, panicked depositors pulled billions of dollars from banks, which subsequently closed for two weeks and later imposed stringent restrictions on withdrawals.

Protesters now shout insults at Salameh outside the central bank, surrounded with concrete walls and barbed wire on Beirut’s Hamra Street.



Syrians in Libya Struggle to Escape ‘Exile in Limbo’

A photo shows young Syrian men who drowned after their boat capsized off the coast of Libya. Credit: Rights activist Tarek Lamloum
A photo shows young Syrian men who drowned after their boat capsized off the coast of Libya. Credit: Rights activist Tarek Lamloum
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Syrians in Libya Struggle to Escape ‘Exile in Limbo’

A photo shows young Syrian men who drowned after their boat capsized off the coast of Libya. Credit: Rights activist Tarek Lamloum
A photo shows young Syrian men who drowned after their boat capsized off the coast of Libya. Credit: Rights activist Tarek Lamloum

About seven months ago, a group of 25 Syrian youths, including minors, set off from Libya on an irregular migration journey toward Europe. Only four made it back alive. The rest drowned in the Mediterranean.

The tragedy, which left a deep mark on Syrian communities both in Libya and abroad, has drawn renewed attention to the large and diverse Syrian population now living in the North African country, some fleeing the war in Syria under former President Bashar al-Assad, others settled there long before.

Syria’s presence in Libya is far from monolithic. It spans businessmen, migrant laborers, families who settled during the rule of Muammar Gaddafi, and former fighters now working as mercenaries. Many also see Libya as a temporary stop on the perilous path to Europe.

For most, Libya is not the destination but a gateway. The recent drowning of 21 Syrians in the Mediterranean was not an isolated tragedy, but part of a pattern of loss that has haunted the community for years.

Reports from local and international migration watchdogs have documented repeated drownings and arrests of Syrians at sea, with many captured by Libya’s coastguard and detained in overcrowded jails.

Despite the risks, many Syrians have managed to adapt to life in Libya, integrating into local communities and participating in its economy.

Yet numerous challenges persist, particularly for undocumented workers and those living without valid residency papers. Many report facing discrimination, abuse, and difficult working conditions.

As thousands of Syrian refugees across the Middle East prepare to return home amid improving conditions and relaxed restrictions, Syrians in Libya remain stuck, unable to stay, and unable to leave.

“We’re caught in the middle,” said one Syrian resident in Tripoli. “We can’t endure much longer, but we also can’t afford to go back.”

Many Syrians in Libya say they are increasingly vulnerable to exploitation, including passport confiscation and harassment by armed groups and criminal gangs operating with impunity.

Several Syrian residents told Asharq Al-Awsat they are facing rising unemployment, frequent kidnappings, and demands for ransom by militias. For those who now wish to return to Syria, doing so has become financially prohibitive due to hefty fines for visa violations.

Steep Penalties for Overstaying

Under a revised Libyan immigration law enacted on March 14, 2024, foreigners who overstay their visas or residency permits are charged 500 Libyan dinars - around $90 - per month. The regulation adds a significant burden for many Syrians whose legal documents have expired and who lack the resources to renew them or pay the fines required to exit the country legally.

Due to the political division in Libya since 2014, no official statistics exist on the number of foreign residents. However, the UN refugee agency (UNHCR) reported in 2020 that approximately 14,500 Syrian refugees and asylum seekers were living in Libya.

Ten years after arriving in Libya, Ahmed Kamal Al-Fakhouri says he is now trapped, unable to afford life in the country or the high costs of leaving it.

“They’ve imposed fines on us that are beyond reason - nearly $1,500 per person,” said Fakhouri, a restaurant worker in Tripoli, echoing a growing outcry among Syrians in Libya burdened by mounting penalties and legal uncertainties. “Sometimes, I can’t even afford a day’s meal.”

Fakhouri fled Derna after the deadly floods of August 2023 and resettled in Tripoli.

“I saw death with my own eyes,” he told Asharq Al-Awsat, describing the trauma of losing his home. “Now we’re living in misery. We want the world to hear our voice - we want to go back to our country.”

Libya hosts thousands of Syrians, including doctors, engineers, university students, and day laborers who fill the country’s markets in search of work to support their families.

Yet many say they now find themselves stuck, facing visa penalties they can’t afford and no clear path home - even as the fall of Assad’s regime renews hopes for return.

“Exit Tax” Burdens Families

While Libya’s labor ministries have issued no formal statement on the matter, members of the Syrian community say they are being charged an "exit tax" calculated based on their overstay period. No official decree has been published, but testimonies suggest the fees are acting as a de facto barrier to departure.

Following Assad’s ouster, many Syrians are reconsidering return, describing exile as a “prison,” but are deterred by the financial burden of settling overstays.

Asharq Al-Awsat reached out to both of Libya’s rival labor ministries to clarify policies affecting Syrians and the reported fines for expired documents, but received no response.

Zekeriya Saadi, another Syrian living in Tripoli, has publicly called on authorities in both eastern and western Libya to cancel the exit tax and allow those wishing to return to Syria to do so.

“In these unbearable conditions, it’s unreasonable to ask refugees to pay such high fees just to leave the country,” he said. “This tax is a major obstacle, it exceeds our capacity, especially given our financial hardships.”

Saadi said most Syrians in Libya are low-income families without stable jobs. “Many are at risk of eviction, kidnapping, or exploitation. Leaving has become a matter of survival,” he said. “How can a displaced person be treated like a tourist or a wealthy expat?”

He urged Syria’s Foreign Ministry to take a clear stance and negotiate with Libyan authorities for fee exemptions and coordinated return efforts, while also working to protect Syrians who remain in the country.

Passport Problems Bar Education

Beyond financial barriers, expired passports are also stranding Syrians in legal limbo. Many have lost access to services, and the issue is now affecting the next generation.

According to Syrian media reports, education officials in Misrata barred at least 100 Syrian children from enrolling in public schools because their parents’ passports had expired, highlighting how bureaucratic obstacles are deepening the crisis for displaced families.