Lebanon today »Can Lebanon be able to achieve sustainable stability, or is the crisis still at its peak?

The Lebanese economy continues to face major challenges amid the continuous financial crisis, but the financial markets have shown some stability in the exchange rate of the Lebanese lira against the dollar, as well as an improvement in cash reserves and an increase in the volume of banking deposits.

This development comes in light of the continuing efforts to form a new government and secure the funds necessary for reconstruction, which makes the economic scene swinging between temporary stability and fears of new setbacks.

Growth in banking deposits and cash liquidity

The banking deposits residing in the Lebanese pounds recorded a remarkable increase of 3735 billion pounds, distributed between an increase in savings deposits of 2716 billion pounds, and an increase in demand deposits by 1019 billion pounds. The monetary bloc also witnessed in its broad sense (M4) an expansion of 2007 billion pounds, in light of the growth of cash circulating by 6146 billion pounds, especially after the presidential elections, which partially reflects an improvement in liquidity, but it raises concerns about the continued inflationary pressures.

Critical reserves improve

The Lebanese Bank’s liquid bank reserves in foreign currencies continued to rise during the first half of January, recording an increase of 210 million dollars, to reach about 10.345 billion dollars according to the latest available data.

International support to reforms

On the global level, the World Bank affirmed its support for Lebanon in its efforts to rebuild and achieve economic stability, but stressed the need to implement structural reforms that guarantee the sustainability of any external financial support, while emphasizing the importance of enhancing transparency and restoring investor confidence in the Lebanese economy.

Can Lebanon be able to achieve sustainable stability, or is the crisis still at its height?

The Lebanese economic scene remains fraught with challenges, and despite some positive indicators, the absence of radical reforms may return the country to the cycle of financial decline.