The economist, Muhammad Musa, considered that “it has been officially confirmed that the largest banknote that will most likely be printed will be the half-million-pound note, and until now, the matter of the million-pound note or the 250-thousand-pound note has not been decided in order to accompany the 500-thousand-pound note, according to an amendment made by Parliament last week.” In the past, when he amended Articles 4, 5, and 6 related to the Monetary and Credit Law by adding one phrase, i.e. a larger denomination, in other words, he left the Central Bank with the option to choose the value of the largest note, but the matter was decided that there will be a banknote larger than 100 thousand that will come.
He explained in his speech to “Sputnik” that “in the economic sense, there is no doubt that the talk is very dangerous, and we are talking about printing a large paper, as the largest paper was 100 thousand pounds, and before the crisis it was worth about 67 dollars, and it reached when the dollar exchange rate reached the limits of 144 thousand pounds 67 Cents, and this is a great tragedy for the collapse of the Lebanese currency to levels equivalent to 97% of its value, and this is a major crisis for the state and citizens, and it is part of the economic collapse that accompanies today with the issuance of a new denomination of the currency.
Moussa also pointed out that “this issuance is associated with the collapse of exchange rates to limits exceeding 60 or 65 times. There is persistence in approving reform laws and the inability to pass them until now. We have not concluded an agreement with the IMF. We are talking about an almost collapsed economy,” noting that Growth rates actually do not exist, and the disaster that accompanies the issuance of such a paper is that we suffer from inflation rates that may be the highest in the world. We and Zimbabwe are competing.
In the same context, Moussa considered that “the danger in the matter is that the state somewhere resorted to this printing, perhaps to increase the salaries of the public sector, and everyone is aware that the increases were approved 6-fold and 7-fold from about two months ago until now. There are question marks on this issue, somewhere the monetary mass is over The doors of the year 2019 were about 4, 5, or 6 trillion, and the monetary mass reached somewhere around the 90 limits, and today it is around 75 trillion pounds, and thus it has multiplied dozens of times.
He added, “The fear that the monetary block will be under the pretext of reducing the cost of living, which has approached about 50 million pounds per family, that we will be facing a larger monetary block, especially if this is accompanied by two basic issues, namely the completion of the closing of the political horizon and the continuation of the closure of the economic horizon if it is accompanied by the absence of Approval of a recovery plan and program with the IMF, and this coincides with the departure of the ruler and the absence of a banking platform. (Sputnik)
