Lebanon's acting central bank governor Wassim Mansouri has outlined plans to resolve the country's long-running depositors' crisis, telling Al-Eqtisadiah on February 4 that a comprehensive solution requires an executive authority capable of implementing an integrated plan within a reasonable timeframe.

In a telephone interview, Mansouri said that the bank's current "partial solutions" for specific periods cannot replace the reform laws that must be enacted between the government and parliament. While acknowledging lengthy delays in addressing the issue, he confirmed the new government would prioritise this file.

Lebanon's economic crisis intensified in 2019 when the country entered a financial collapse due to accumulated public debt.

The Lebanese pound's depreciation has severely hit citizens' purchasing power and local currency deposits, while unemployment rates have sharply increased.

The deposit crisis began in late 2019 when banks imposed strict restrictions on dollar withdrawals and international transfers, effectively trapping depositors' funds within the banking system.

Mansouri expressed cautious optimism following the recent election of a new president, describing it as a positive step toward restoring constitutional institutions' regular functioning.

"The election of a new president has positively impacted Lebanese markets, with high demand for the Lebanese pound indicating renewed confidence in the local currency," Mansouri said while emphasising that addressing the central bank's upcoming challenges depends on the next government's ability to implement reforms.

The central bank will continue working to ensure monetary and financial system stability, Mansouri added, noting this requires implementing necessary reforms as quickly as possible, including structural changes and re-engagement with the International Monetary Fund (IMF).