May 19, 2022

Dubai Week

Complete Dubai News World

Lebanon is on the hot plate of elections ... and the pound is facing 3 shots

Lebanon is on the hot plate of elections … and the pound is facing 3 shots

And by entering the country The state of electoral peaceThe price is Lebanese pound Especially since the currency has lost more than 90 percent of its value since October 2019, a frenzy at the center of the election field.

The fall of the lira led to the poverty of a large number of people Lebanon The monthly salary is now only a maximum of one or two days.

Lebanese are wondering what will happen to the lira against the US dollar on Monday, amid expectations that the currency will take 3 possible paths after the election results.

Bitterness and matter

In an interview with Sky News Arabia, economist Nicola Sikhani said that waiting in Lebanon after the parliamentary election results could be described as bitter and bitter.

He explained that if the central bank did not intervene after the election, “it’s a problem”, while the dollar is expected to rise to new record levels in the equivalent market, which could be as high as ,000 35,000 or even 50,000 per dollar. This could lead to a further worsening of the pound and the price of inflation.

But if Bank to Liban intervenes, a second problem will arise, according to a Lebanese expert, because it will remove compulsory reserve funds that cannot be used to maintain the value of the dollar within currently recorded limits. Parallel market, and Shekhani described the practice as a “big financial mistake”.

Bargaining and distrust

Shekhani expressed his disbelief about the coming period, saying “there is a problem in both cases because the balance of payments is negative. Lebanon did not launch an economic plan, but politicians continued their differences.”

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Shekhani said the exchange rate of the US dollar would be between 25 and 27 thousand pounds today, “citing a pre-election political agreement to avoid a fall in its value, and called on the Lebanese central bank to intervene. It paid $ 500 million closer to the market.”

Shekhani describes this amount as “the largest amount that can be spent on setting up a plant to generate electricity.”

Stability direction

On the other hand, bank risk expert Mohammed al-Fahili believes that Bank to Liban intervention in the market reflected the stability of the dollar exchange rate against the lira. Elections.

In an interview with Sky News Arabia, al-Fahli explains, “After the economic crisis that hit the country from 2019, the priorities of Lebanese as individuals or businesses are changing because they are now looking at how to adapt. The changes imposed by the exchange rate change.”

“The stability of the exchange rate builds stability on the basis of which Lebanese determine their spending,” the researcher pointed out.

But al-Fahli did not hide his fears that some of the affected parties would market their concerns over the lira after the election, due to lawsuits between the Banks Association of Lebanon and the Bank to Liban. Will be filed against the Lebanese government for this purpose.