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Exchange Shops in Lebanon See Crowds Amid Presidential Election Buzz
Lebanese citizens across the country have been crowding currency exchange shops, fearing a potential drop in the dollar’s value after the election of a new president.
But is the panic justified?
In a statement to Nidaa Al-Watan, economic expert and columnist Antoine Farah explained that the Lebanese lira’s exchange rate is not directly impacted by political developments. Drawing on past experiences, such as Lebanon’s civil war, he noted that the exchange rate remained stable even during the most difficult times. This, he said, is proof that the stability of the lira relies more on artificial monetary policies than on actual economic conditions.
Farah also pointed out that an immediate drop in the dollar’s value is unlikely following the election since the Central Bank of Lebanon (BDL) is currently implementing monetary measures to prevent sudden fluctuations in the exchange rate.
For now, the dollar’s rate is expected to remain steady unless significant changes are made to monetary policies after the elections. Even then, any shifts will likely be gradual to avoid major economic shocks.
As the election session unfolds, the nation waits to see if Lebanon will get a new president and whether this will bring any surprises to the dollar rate.
