Three Factors Behind the Rise in Exchange Rate... And What About the Upcoming Scene?

Economic expert Jassim Ajaka stated that "there is no justification for the rise in the value of the dollar in this manner during the weekend (as there is no trading in the market), thus the reason stems from manipulation by influential parties." He revealed in an interview with the electronic newspaper "Al-Anbaa" three factors that play a role in the rise of the exchange rate. The first factor is political, amid the possibility of some politicians settling certain scores based on electoral results. The second factor is the rise in global product prices, particularly wheat and oil, leading to an increased demand for dollars in Lebanon for imports. The third factor includes speculation in the markets among traders and money changers. Regarding the upcoming scene, the situation is bleak unless the authorities take measures to curb the collapse, as according to Ajaka, "the fate is directly linked to politics; if the performance continues as it is without resorting to a reform plan accompanied by effective measures on the ground, then Lebanon will not be able to sustain imports, and the quantity of imported goods will decrease, signaling the return of queues for gasoline, bread, and others. However, if a government is formed quickly and negotiations with the IMF are completed, along with the approval and implementation of the required laws, then we would have embarked on a positive path."