Lebanon entered a worse situation after the parliamentary elections, at least concerning the economic and living crisis, marked by a frightening volatility in the dollar exchange rate, with record highs followed by rapid declines, justified only by complete confusion. This comes despite a significant drop in the prices of diesel and gas. In the absence of any vision for a solution, the Lebanese face an ongoing catastrophic situation that the elections did little to alleviate. Meanwhile, the political scene remains opaque; the session to elect the new Speaker of Parliament and his deputy next Tuesday marks the first challenge, while other challenges seem more complex amid a media and political atmosphere that signals an anticipated governmental vacuum and a likely presidential vacancy.
The dollar surged to 39,000 lira and then dropped by around ten thousand lira within 24 hours due to a circular issued by the central bank designed to calm the situation. However, this is merely a temporary policy that places the burden of consistently supplying dollars on the Central Bank, or else return to the volatility. According to a financial expert, "this is a game of politics with the dollar that makes Lebanese citizens hostages to harsh tests on the eve of every political challenge."
After the dollar hysteria, the Governor of the Central Bank, Riad Salameh, issued two circulars. The first addressed lira holders wishing to convert their currency to dollars under Circular 161, asking them to approach banks starting next Monday, at the Sayrafa rate, with their requests to be fulfilled within 24 hours.
In another circular, Salameh confirmed that banks must keep their branches and counters open daily until 6 PM for three consecutive days starting Monday to meet citizens' demands. Banking risk expert Dr. Mohammad Fahili commented on his expectations for the dollar exchange rate in the coming days: "Expect a positive shift in the lira exchange rate in conjunction with the election of Berri as Speaker of the House, and what Salameh announced yesterday is merely the first step in preparing for this shift." He emphasized that those responsible for the sharp and rapid rise in the dollar exchange rate would return it to what it once was, around 25,000 lira.
