Expanding on my take regarding Karim Soueid’s appointment as Governor of the Central Bank, I’d like to outline the three red flags that sparked my criticism:
1. The Process – Why was only his name—and another almost irrelevant one—presented for a vote to the Council of Ministers? What happened to the other names vetted by the U.S., namely Jihad Azour, Philippe Jabre, and Firas Abi Nassif? I fully respect Karim Soueid’s credentials and extensive experience, but you can’t help but wonder: why did the President push so strongly for his name alone? All candidates had stellar resumés, yet President Aoun didn’t provide any justification for favoring Soueid in particular. I’ve also heard rumors that Nawaf Salam backed Firas Abi Nassif due to a family connection by marriage—but nepotism isn’t in PM Salam’s playbook. He didn’t veto or push for any one name, aside from expressing his opposition to Soueid specifically. The whole nomination process was far from transparent or substantiated—and it raises serious questions about how decisions of this magnitude are being made.
2. The Media Coverage – The way outlets like MTV and Ici Beyrouth rang the church bells for Soueid in the days leading up to his appointment says a lot. Their reporting barely mentioned the other contenders, making it feel like his appointment was a fait accompli. This media push was so overwhelmingly one-sided that it’s hard not to question the vested interests behind it. When you know the ties between these outlets and Antoun Sehnaoui—and by extension, major bank shareholders—it starts to look like more than just an editorial preference. It looks like a coordinated campaign.
3. The Narrative He Presents – I might not be a financial expert, but even a quick scroll through Mr. Soueid’s LinkedIn posts was enough to raise red flags. In one post from a year ago, he writes: “The paper distills the root cause of the financial & monetary crisis, which had started with the Government’s ill-advised decision to default on its public debt obligations. This caused a run on the banks by depositors fearful for their savings, which in turn, were massively invested in sovereign debt securities.”
This framing is extremely misleading. To attribute the financial collapse primarily to the sovereign default and a depositor bank run is to whitewash the role of commercial banks and the Central Bank in fueling the crisis. What about the unsustainable interest rates on a currency we don’t even control? What about the banks funneling money into BDL’s financial engineering schemes and underwriting government deficits for years?
According to the FT, sources close to Soueid say he would consider using Lebanon’s gold reserves to compensate depositors, while opposing a banking sector restructuring law and efforts to reform banking secrecy. That narrative might appeal to the banks and the corrupt elite—but it does little to rebuild trust, attract donors, or move Lebanon toward real accountability.
All of this to say: I don’t trust this guy, and I don’t see how this narrative builds credibility with the Lebanese people or the international community. I truly hope I’m proven wrong—but until then, I remain skeptical.
Thank you Kristy! I enjoy reading your analysis every Sunday!
It means the world dear Marie Noelle!
Waaaw always refreshing to
read from a bright analytical mind 👍👍👍 keep feeding us 🙏🙏
My pleasure Youssef! Your feedback is always welcome as well
Expanding on my take regarding Karim Soueid’s appointment as Governor of the Central Bank, I’d like to outline the three red flags that sparked my criticism:
1. The Process – Why was only his name—and another almost irrelevant one—presented for a vote to the Council of Ministers? What happened to the other names vetted by the U.S., namely Jihad Azour, Philippe Jabre, and Firas Abi Nassif? I fully respect Karim Soueid’s credentials and extensive experience, but you can’t help but wonder: why did the President push so strongly for his name alone? All candidates had stellar resumés, yet President Aoun didn’t provide any justification for favoring Soueid in particular. I’ve also heard rumors that Nawaf Salam backed Firas Abi Nassif due to a family connection by marriage—but nepotism isn’t in PM Salam’s playbook. He didn’t veto or push for any one name, aside from expressing his opposition to Soueid specifically. The whole nomination process was far from transparent or substantiated—and it raises serious questions about how decisions of this magnitude are being made.
2. The Media Coverage – The way outlets like MTV and Ici Beyrouth rang the church bells for Soueid in the days leading up to his appointment says a lot. Their reporting barely mentioned the other contenders, making it feel like his appointment was a fait accompli. This media push was so overwhelmingly one-sided that it’s hard not to question the vested interests behind it. When you know the ties between these outlets and Antoun Sehnaoui—and by extension, major bank shareholders—it starts to look like more than just an editorial preference. It looks like a coordinated campaign.
3. The Narrative He Presents – I might not be a financial expert, but even a quick scroll through Mr. Soueid’s LinkedIn posts was enough to raise red flags. In one post from a year ago, he writes: “The paper distills the root cause of the financial & monetary crisis, which had started with the Government’s ill-advised decision to default on its public debt obligations. This caused a run on the banks by depositors fearful for their savings, which in turn, were massively invested in sovereign debt securities.”
This framing is extremely misleading. To attribute the financial collapse primarily to the sovereign default and a depositor bank run is to whitewash the role of commercial banks and the Central Bank in fueling the crisis. What about the unsustainable interest rates on a currency we don’t even control? What about the banks funneling money into BDL’s financial engineering schemes and underwriting government deficits for years?
According to the FT, sources close to Soueid say he would consider using Lebanon’s gold reserves to compensate depositors, while opposing a banking sector restructuring law and efforts to reform banking secrecy. That narrative might appeal to the banks and the corrupt elite—but it does little to rebuild trust, attract donors, or move Lebanon toward real accountability.
All of this to say: I don’t trust this guy, and I don’t see how this narrative builds credibility with the Lebanese people or the international community. I truly hope I’m proven wrong—but until then, I remain skeptical.
Link to Linkedin post: https://www.linkedin.com/posts/karim-souaid-597526131_harvard-growth-lab-the-highly-regarded-macro-activity-7135548797283106817-0Jm2?utm_source=share&utm_medium=member_ios&rcm=ACoAACGmsIsBx96Kf4Ptvh30i8Ly0nSK_5lgE78
FT post is linked at the end of this week’s newsletter
Very interesting read for a non Lebanese. Thank you Kristy
Thanks for the feedback Aimilia, I’m so glad!