Banque du Liban: The Story of Its Birth

This report examines a pivotal period in Lebanon’s financial history between 1960 and 1964, when President Fouad Chehab became convinced that the country needed an independent central bank.

This report examines a pivotal period in Lebanon’s financial history between 1960 and 1964, when President Fouad Chehab concluded that Lebanon needed an independent central bank to manage monetary policy and regulate the banking sector. It covers the circumstances leading to the 1963 Code of Money and Credit, Joseph Oughourlian’s role in preparing the draft, objections from some banks, the creation of Banque du Liban and the appointment of Philippe Takla as its first governor. It also explains the central bank’s principal statutory duties: issuing currency, regulating liquidity and credit, and maintaining the stability of the lira—one of the most important institutional reforms of the Chehab era.