Edmond Naim and the Fight Against Financing the State at the Lira’s Expense

The economy deteriorated quickly at the start of Amine Gemayel’s presidency. GDP fell by 25 percent in 1983, more than $1.5 billion left Lebanon after the PLO’s departure, and Banque du Liban’s reserves dropped below $650 million. When Edmond Naim became governor in 1985, an open confrontation began between a state seeking deficit financing and a central bank refusing to become an unlimited source of funds—a battle over the independence of monetary policy.