ECONOMYAs Lebanon Collapses, the Man With an Iron Grip...

As Lebanon Collapses, the Man With an Iron Grip on Its Finances Faces Questions

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The coronavirus pandemic and a huge explosion in the port of Beirut last August further devastated the economy.

Estimates put the central bank’s losses at $50 billion to $60 billion. The International Monetary Fund has offered assistance, but Lebanese officials accuse Mr. Salameh of blocking an audit sought by the United States and other countries that would unlock I.M.F. aid, as well as a separate investigation into alleged fraud at the central bank.

Most Lebanese have said goodbye to whatever savings they had while the currency has crashed, reducing salaries once worth $1,000 a month to about $80. The central bank is burning through its reserves, spending about $500 million per month to subsidize imports of fuel, medicine and grain.

“Lebanon has been living on borrowed time, and now the chickens have come home to roost,” said Toufic Gaspard, a Lebanese economist and former adviser at the I.M.F. “The whole banking system has collapsed, and we have become a cash economy.”

The crash has soured many Lebanese on their once celebrated central banker.

“I can’t say anything good about Riad Salameh,” said Toufic Khoueiri, a co-owner of a popular kebab restaurant, while having lunch with a friend in Beirut. “Our money is not stuck in the banks, but simply stolen.”

His friend, Roger Tanios, a lawyer, said he had once admired Mr. Salameh for keeping Lebanon financially stable but had changed his mind.

Mr. Salameh, he said, had gone spectacularly off course.

“Every country has its mafia,” Mr. Tanios said. “In Lebanon, the mafia has its country.”

Ben Hubbard reported from Beirut, and Liz Alderman from Paris. Hwaida Saad contributed reporting from Beirut, and Asmaa al-Omar from Istanbul.

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