Lira is secured
by Central Bank capabilities

Riad Salameh: “There is no need to panic”

The governor of the Central Bank, Riad Salameh, affirmed the stability of the lira. He cited financial operations carried out by the Central Bank and cooperation with the banking sector in his assessment.

“The lira will remain stable and it is based on the existing capabilities of the Central Bank,” he said. “The Central Bank has built a monetary model that takes into account the financial and economic data of the country has contingency plans to deal with negative surprises,” he said.

Salameh was not worried about the situation of banks. “Banks have liquidity and a long history of dealing with customers,” he said. The Central Bank controls liquidity through special operations and through the sale of the dollar. The State paid all its dues in 2017.

“We are comfortable with our available capabilities and able to contain any problem,” he said. There is plenty of liquidity in lira and dollar in the banking system, and is able to face any level of demand.

“There is no need to panic and we have carried out pre-emptive operations and in modern history we have been in several bad stations that we have dealt with,” said Salameh. “We are in a political – not monetary – crisis,” he said.

“There is no risk to monetary stability,” said Joseph Torbey, Chairman of the Association of Banks. “The lira is supported by large reserves in the Central Bank, and by confidence in the banking sector, and the continued work of institutions,” he said.