Food storage, withdrawal of funds and high prices .. Where is the Lebanese crisis heading?

Waseem Al-Zuhairi-Beirut

Widespread concern over the Lebanese people is mounting fears of the negative repercussions of the crisis in the country, in light of the ongoing popular protests and the inability to form a new government.

Indicators of this concern were evident from the economic, living and financial aspects, in light of a number of negative data, especially the low exchange rate of the Lebanese pound against the US dollar at the exchange shops or the parallel market, where the dollar reached 1800 Lebanese pounds, while the official exchange rate is 1507 pounds .

At a time when the Lebanese market is witnessing a rise in the prices of some commodities, there has been an influx of citizens to shops, where they stored food, while there is occasional shortage of fuel due to scarcity in the US dollar, and some have withdrawn their money from banks.

Rising prices
The President of the Consumer Association Zuhair Barro that the economic situation in the country is very difficult, and that there is a state of inflation, and said that there is a rise in prices in all sectors.

He pointed out that people rushed to the stores in reaction, and pointed to the growing concern of citizens, especially after the decline in the exchange rate of the Lebanese pound against the US dollar.

Barro explained to Al Jazeera Net that most of the foodstuffs, cans, cereals, meat and vegetables prices have increased by rates ranging between 5% and 27%, adding that there is instability in the markets warning of increased risks in the light of the formation of a new government.

Official assurances
In light of this situation, the Governor of the Banque du Liban Riad Salameh declared that what the country is currently witnessing is an exceptional situation.

Salama announced the development of mechanisms to protect depositors' money, which would also ensure that no bank would default. The first objective was to maintain the stability of the lira, and the possibilities were there.

He pointed out that banks adopt the exchange rate set by the Central Bank, and reassured Salama that measures have been taken to protect the rights of depositors in banks so as not to bear any loss.

Commenting on the statements of the Governor of Banque du Liban, Berro said that there is a transition to a new phase, namely the inability of the Central Bank of Lebanon to maintain the stability of the lira.He pointed to the fear of the people because most salaries are in the local currency, which will lead to an unknown inflation situation.

The need to form a government
For her part, the writer specialized in economic affairs, Mahasin Mursel, considered that the request of the Governor of the Banque du Liban Riad Salameh asked the banks to re-study the banking facilities and the Lebanese lire for the dues. .

She told Al-Jazeera Net that there is concern among the owners of capital of banking procedures, especially after the sudden change in the exchange rate of the Lebanese pound and the loss of part of its value, and the subsequent crises in the sectors of hydrocarbons, medicines and wheat, saying that the state economic control is absent.

She said that the panic of people is normal in such worrisome situations, and said that the first steps to address these crises begin with the formation of a government that enjoys the confidence of the Lebanese street, and considered that this would reduce the demand for the US dollar and restore the lira balance.

She added that the next government should work to address the balance of payments imbalance, stop the bleeding in public finances, and stimulate the economic machine again.