Amin Salam gave his insights regarding the Lebanese pound yesterday, Tuesday, April 19. This Lebanese Minister of Economy and Trade spoke amid his country’s impending deal with the World Bank.
We are interested in sharing this news with our readers, especially those holding units of the Lebanese pound. We believe this report can help them understand how to manage their foreign currency this week.
According to the news posted online by US daily newspaper The Washington Post, the Lebanese pound has lost grip of more than 90 percent of its value. This event has been the reality since the economic meltdown in Lebanon started in October 2019.
At the time of writing, US$1 is equivalent to 1,507.50 Lebanese pounds based on the foreign exchange rate posted on Xe.com. According to Salam, the Lebanese pound could become more stable.
He added that Lebanon could be in “a very good place” in five years. The Lebanese economy minister explained that these auspicious states could happen if Lebanon fully abides by the International Monetary Fund or IMF’s program.
He pointed out that conditions will become quite difficult if otherwise because there is no other plan. Lebanon and the IMF reached a tentative agreement earlier this April for comprehensive economic policies that could eventually give some relief to the Western Asian country.
Lebanon is in the grip of a devastating economic crisis. Experts describe the country’s dilemma as one of the worst in modern history.
Lebanon is where over three-quarters of its 6 million people, including 1 million Syrian refugees, now live in abject poverty. Moreover, the Lebanese Republic presently imports most of its wheat.
Over the past weeks, the country has faced shortages as the Russia-Ukraine war rages, leading to surges in food product costs and oil prices worldwide.
Concerns are also present about the Lebanese government possibly lifting wheat subsidies as foreign currency reserves plummeted to critical levels at the Banque du Liban, the central bank of Lebanon.
Any wheat subsidy lifting activities would sharply increase bread prices, impacting the poor in the Mediterranean nation. Salam pointed out that the Russia-Ukraine war is forcing Lebanon to look for new wheat sources that are more expensive and distant.
We want to acknowledge the insights that the Lebanese Minister of Economy and Trade Amin Salam provided this week regarding the Lebanese pound. We agree that the world economy and not just that of Lebanon is undergoing hard and uncertain times caused by several factors such as the Russia-Ukraine War.
We respect Minister Salam’s positive views about the Lebanese pound. However, we believe it would take time before this official currency of Lebanon recuperates.
We agree that the Lebanese government, all Lebanese officials, and the parliament should cooperate and facilitate entire Lebanon in abiding by the IMF’s program. We think Lebanon then can begin achieving tangible results for its struggling economy in the next two to three years.
This event can happen following a final agreement reached with the Washington, D.C.-headquartered international financial institution, which is the IMF, and the Lebanese government having a political intention for success. With these actions, we believe the Lebanese pound can recover after quite some time.