2023-05-02 12:52:08
Economist Imad Chidiac said, “The main reason for the dollar’s stability for so long is the Banque du Liban’s reluctance to intervene in the market.”
In an interview with the “Lebanese Debate”, Al-Shidyaq said: “The Central Bank used to buy dollars from the market, but it is currently no longer buying the same amount and may have stopped doing so.”
And he stressed that “the fall of the dollar by 1,500 or 2,000 Lebanese pounds does not mean anything, as the percentage of this decline does not exceed 1%, which is a relatively small number and does not mean a decrease in the exchange rate of the dollar, and this is what happens in any market in the world.”
And he revealed that “there are rumors among money changers talking regarding a decline in the price of the dollar in the volatile period to push people to sell their dollars, and for the market to move by playing on the psychological factor, as there is an interest for them that the market fluctuates up and down, as stability is the enemy of the black market.”
And he believed that “the dollar will continue to stabilize, at least until the end of June, that is, until the end of the term of the Governor of the Banque du Liban, Riad Salameh, for several reasons.”
The first is that the political authority has an interest in it remaining stable, especially in light of the presidential vacuum, as they do not want the people to move and the street to ignite.
The second is that the Banque du Liban and its ruler have an interest in the market remaining stable because there are lawsuits pursuing the ruler at home and abroad, thus conveying a message that the explosion and implosion may occur following the end of his term and to give the impression to people that his existence is the reason for the stability of the dollar for a long time.
In response to a question, he replied: “It is too early to talk regarding what will happen following Salameh’s mandate ends. First, it must be known who will take over the governorship of the Banque du Liban, what monetary plan he will adopt, and whether he will continue to print lira and buy dollars from the market to finance the government, or that the government will assume its responsibilities.” Public sector salaries are paid from taxes and fees that they collect from citizens, so the Banque du Liban is currently carrying out this task.
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