Does the exchange rate change after the election of the president?

Economist Mahmoud Jabaei confirmed to MTV that once a president is elected, within international and local consensus, this will give a signal to the international financial community that Lebanon now has political stability that leads to economic solutions, as there are many reform decisions that cannot be taken in light of the vacuum in the presidency and with the government. Caretaker.

He explained that electing a president who bears the characteristics of a president who is open to the Arab and international communities gives Lebanon an opportunity to breathe and deal with the international community on the basis that it is in compliance with international resolutions, because Lebanon can no longer bypass international resolutions and must agree with the international community to obtain capabilities that will help it overcome the next stage. However, this matter alone is not enough, as Lebanon must also carry out actual reforms, and here comes the role of the government that will be formed during the era of the new president, which must be harmonious among themselves and consistent with the era, and there must be a clear plan to address the financial and economic crises in the country.

Launching the wheel of reform, giving priority to the legitimate economy, combating corruption, stopping smuggling and tax and customs evasion, in addition to defining a clear plan for how the state will deal with the banks and the Bank of Lebanon regarding depositors’ funds and restructuring the banks, are all factors that must be worked on. Therefore, the matter is not limited only to elections, as it remains the basis of the president’s vision and plan. Here, Jabaei stresses that electing a president of the republic is, of course, an important matter and is an essential starting point, but he must have a clear vision for the next stage.

What about the exchange rate? Jabaei answers: “The exchange rate is stable, and this is an excellent thing, and we must continue to achieve stability.” I do not expect any decrease or increase in the exchange rate after the election of the president. Rather, I expect this stability to be maintained by the Central Bank and the Ministry of Finance, and therefore I do not see any impact on the lira.”