My weight declares readiness to “liberate” the lira: a prior surrender to the IMF


The Minister of Finance, Ghazi Wazni, yesterday dismissed the doubt with certainty, stressing that the Ministry of Finance and its successor, the government, are going with the ready-made cash recipe, with full liberalization of the exchange rate of the lira against the dollar. Although my weight in his statements yesterday to Agence France-Presse, he talked about a transitional stage by adopting a flexible exchange rate, and linking the process of liberalizing the exchange rate to international financial support, but in the end he talked about the scenario of complete liberalization, in a way that predicts the great risks ahead for the Lebanese and their national currency.Between leaving the price stable and between liberalizing it and leaving it loose as a weighty plan ultimately reached, there are many compromises, among them the adoption of a flexible price always, with the Bank of Lebanon carrying out limited interventions, instead of leaving the market to the monopolists and speculations, in a country that has fallen out of order It lacks accountability and social norms that respect any justice in the population.
And the words of my weight, at this very critical moment, where internal imports are absent due to the absence of industrial and agricultural production and the large scarcity of financial transfers abroad, confirms that Lebanon has lost the opportunity to present its own plan that takes into account the national economy and not only the financial structure. Instead, those concerned decided to shorten the work by adopting the prescription of financial slavery, which was prepared in advance to be dropped on failed states!
This thinking of liberalizing the exchange rate, apart from its impact on commodity prices, causes serious repercussions on contracts and loans, previously held, especially since there are many lease and borrowing contracts that have already been done in dollars and will remain valid in the future, as well as loans borrowed by families and individuals And institutions in the US dollar as well, which means a great default in their payment.
If the prices of fuel, medicine, and wheat purchased in dollars are still largely controlled by the adoption of the current official exchange rate at 1507 pounds per dollar, what is the guarantee with the liberalization of the exchange rate, that the prices of these commodities do not rise dramatically, eliminating any capacity? Purchasing for the Lebanese to secure basic goods?
In the initial negotiations meeting between Lebanon and the IMF two days ago, the Fund delegation seemed clear in its request to liberalize the exchange rate of the lira, which was confirmed by my weight in his statements yesterday, so that his statements come as a positive response to what was discussed in the closed meeting!
Representative sources, who participated in the discussions of the Finance and Budget Committee, considered my weight position “advanced” from the old discussions, of course, negatively. My victory, and before the Finance and Budget Committee, answered a question, denying that the plan had adopted liberalization of the exchange rate. He suggested to his questioners that the plan relied on numbers circulating in the market to decide its options regarding the exchange rate, and did not adopt in practice the liberalization of the exchange rate. The sources say that “no one in the country is no longer a believer in the ability of the state to play the role in controlling the exchange rate, because this is a complete drain and does not have the ability to do so, and that leaving the market for its freedom is an unwise policy and its problems are great, and we cannot liberalize the price in a way that is reflected Dangerous to major commodities. ” Another issue raised by parliamentary sources, and says that during discussions in the Parliament after October 17, more than one expert confirmed that the IMF estimates about the real price of the exchange rate of the lira against the dollar is 2800 pounds. Today, before taking any step, the exchange rate exceeds 4000 pounds, which means that there is an amount calculated by the rise in the exchange rate caused by the fraud, speculation and monopoly operations, and not necessarily because of economic conditions, especially since the government and the judiciary have not yet reached a concrete result to control the market . The source concludes that “the country needs a transitional stage, but in no case can the absolute liberalization of the exchange rate be approved, and one of the tasks of the Bank of Lebanon is to intervene in a responsible manner.”
From my weight to the Governor of the Banque du Liban Riad Salameh and the issue of dollar manipulation, which will apparently sleep in the drawers, or the director of operations at the Central Bank, Mazen Hamdan, will be offered a scapegoat in it. According to what was learned by Al-Akhbar, the financial prosecutor’s decision, Judge Ali Ibrahim, not to summon Salameh to the investigation of the suburb of the judicial district, was not issued for purely personal reasons related to the judge himself, nor just because of the inner cover that Salama has, but rather a clear intervention carried out By him the American ambassador in Beirut, Dorothy Shea, contributed to the protection of the Governor of the Bank of Lebanon. According to relevant sources, Xia contacted government officials, telling them clearly that “any political retaliation against Salama, under the pretext of the investigations,” will have major consequences. Chia’s position came after the indications that she was previously inspired by in terms of her country’s readiness to discuss the specifications of the candidates for the position of governor of the Banque du Liban.

The US ambassador contacted Lebanese officials to inform them of the consequences of “political retaliation against Salama”

While Salama was confirming to Prime Minister Hassan Diab his refusal to interfere in the market, a statement issued by the investigation committee for money laundering (headed by Salameh) came yesterday, to confirm that Salama is actually interfering. Recently, the price of the dollar jumped from 2,500 liras to more than 4000 liras, so why did he intervene with a small amount of dollars (he sold about 12.7 million dollars and bought about 11.3 million dollars)? And why did not he interfere properly? And why did you interfere with a buyer? The most important question is, was my weight aware of the bank’s operations? Did it happen in agreement with him, as required by Paragraph B of Article 83 of the Monetary and Credit Law?
Salama hid yesterday behind a technical statement, to reduce the importance of the bank’s intervention on the basis that the amounts of buying and selling made by the bank through the cashiers do not exceed $ 25 million, as if this relatively small amount will not affect the market situation. Why then did the bank buy dollars, and for what purpose? The purchase of the Banque du Liban, at this critical moment at the cashiers without the official price, gives a dangerous message to them and encourages them to raise prices, because the role of the bank is not only technical, but primarily moral!
And if the bank’s statement yesterday admitted that it had made buying and selling operations, then why is Hamdan still arrested?


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