Because of the dollar’s rise… Lebanon is on its way to making a “sad” decision!

In light of the rapid rise in the exchange rate of the dollar in the parallel market, which means a major collapse of the national currency, with a corresponding large inflation rate and a huge increase in the monetary mass in the market, there has been talk recently about the inevitability of going to print the 500 thousand and one million pounds, so shall we go Definitely this option? And what are its results?!

In this context, economist Patrick Mardini said, “The monetary mass has increased 20 times in 3 years, after it was in the market about 4 and 5 trillion pounds today. We are talking about about 75 trillion pounds, and this increase is very large.”

In an interview with the “Lebanese Debate”, Mardini said: “In normal countries, the money supply rises by about 2% per year, while in Lebanon it rises 20-fold. There is a surplus in the lira.”

Regarding the printing of the one million and 500 thousand pounds note, Mardini saw that “Lebanon is heading to a stage in which it will be forced to print the one million and 500 thousand pounds notes to facilitate daily transactions, and this is sad, because this means a collapse in purchasing power and that the pound no longer has a high value and thus decline.” in the entrance.”

And he continued, “circulating in banknotes in these denominations that currently exist has become difficult, and if there are advantages in printing these denominations, it is to facilitate the circulation process.”

Maredini also referred to the negative aspects of printing these denominations of banknotes, saying: “This matter will speed up the process of printing more Lebanese pounds and will lead to the continued collapse of the exchange rate of the lira and the rise of the dollar.”