The price of the lira against the dollar will improve…but!

Economist and member of the Economic, Social and Environmental Council, Anis Abu Diab, said, “There is great satisfaction among all segments in Lebanon, the popular people, and the economic bodies. The relief is overwhelming, and the confidence is unprecedented.”

Abu Diab pointed out, in an interview with “Lebanon Debate,” that “the trust given to the President of the Republic, General Joseph Aoun, and yesterday, Monday, culminated in the appointment of President Nawaf Salam, is a trust that the economic market in Lebanon will not have witnessed since the era of Fouad Chehab.”

He continued: “If this is translated from an economic perspective, the relationship between confidence and losses is an inverse relationship, meaning that the greater the confidence, the lower the losses in the economy.” Considering that “Lebanon is on the verge of unprecedented re-growth, especially since this momentum with local confidence is accompanied by a very large international momentum, as it is expected that French President Emmanuel Macron will arrive next Friday in Lebanon, in addition to the direct contact that took place on the second day of the election.” Chairman by Saudi Crown Prince Mohammed bin Salman, and thus the direct promise to sign 22 agreements prepared in September 2019.”

He stressed that “these matters give a state of stability, especially since there is talk that the formation of the government will take place during the end of the week at the latest, and with the formation of the government, and the first meeting after gaining confidence, according to the information, a new governor of the Bank of Lebanon will be appointed, and therefore all of these are good economic indicators.” “.

He added: “If international support is translated into a Saudi and Kuwaiti deposit, as is said, this will enhance confidence and bring back investors, and this is a positive thing. Therefore, if the issue stabilizes, and we go to restructuring the banking sector, restructuring the public sector, and restructuring public finances, this means We are moving towards the right path for sustainable growth, expecting that from today in about 4 years we will return to the level of growth in the gross domestic product as we were in the year 2018-2019.”

And about the dollar exchange rate? Economist Abu Diab asserted that “the price of the dollar will remain as it is for more than one reason, as it is not possible to proceed with stability and make changes in the exchange rate down or up,” noting that “later there will be a managed floating exchange rate, and the central bank will play a role in Its stability, as it is not possible to make an investment without stability in the exchange rate.”

He considered that “the price of the lira will certainly improve against the dollar, but this will not happen now, especially since the 2025 budget was prepared by the resigned government, at an exchange rate of 89,500, and therefore any change now will be at the expense of state revenues, and this matter is not good.”