A German court has cancelled an arrest warrant against former Lebanese central bank chief Riad Salameh because he can no longer use the post to suppress evidence, prosecutors said Wednesday.

After an appeal by Salameh, a Munich court has "cancelled the arrest warrant because the suspect... no longer holds the office of Governor of the Lebanese central bank", a spokeswoman for the Munich public prosecutor's office told AFP.

Salameh, who left his post in July last year, is widely viewed as a key culprit in Lebanon's dramatic economic crash.

Germany, along with France, issued an arrest warrant for Salameh in May 2023 over accusations including money laundering and fraud.

The cancellation of the warrant was made because there was "no longer any risk that he will suppress evidence" since stepping down as governor of the central bank, the spokeswoman said.

The court ruling, dated June 10, however "confirmed the urgent suspicion with regard to the accusations made against the suspect" Salameh.

At the same time, the Munich court also "dismissed an appeal against an arrest order... on the basis of which assets worth millions were secured by the public prosecutor's office".

"Our investigations are ongoing," the spokeswoman said.

Salameh is the subject of judicial probes at home and abroad into allegations made against him.

Lebanon has frozen Salameh's bank accounts, while Britain, Canada and the United States have slapped sanctions on the 73-year-old.

Salameh has denied all charges against him.

Since late 2019, Lebanon has been mired in an economic crisis that the World Bank has dubbed one of the worst in modern times, leaving many in poverty.

The outbreak of the Israel-Hamas conflict, which has seen regular exchanges of fire, mainly between the Israeli army and Hamas ally Hezbollah, reversed a slight recovery for Lebanon, the World Bank said.