Currency conundrum
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by Talal F. Salman February 19, 2019

written by Talal F. Salman February 19, 2019

Two major topics are keeping economists, politicians, academicians, journalists, and others busy nowadays. The first topic is the real value of the Lebanese lira and if the nominal rate must be de-pegged or moved to a lesser pegged value in order to relieve us from our current monetary, economic, and financial misery. The other topic is how Lebanon should protect its currency and economy in the future should petroleum profits start flowing, since any petroleum related legislation we draft today will need to protect us from the famous Dutch disease. The issue that most do not realize is that those two topics are very much intertwined, because Lebanon is already suffering from Dutch disease. What we need to do is to escape a worsening of the disease. The solution is definitely not devaluation; we should rather use the lira to build the proper platform for economic growth. The Dutch disease

Talal F. Salman

Talal Salman started his career with Al-Hawadeth weekly. In 1974, he founded As-Safir daily, which would reach the second largest circulation of Lebanese newspapers after An-Nahar. He was the spokesman of the "Islamo-progressive" left wing during the Lebanese civil war.Talal F. Salman is UNDP project director for fiscal reform in Lebanon

1 comment

Mouine El Saghir ,Engineer February 20, 2019 - 2:14 PM

I have not read ,yet,any comments on this very much appreciated analysis .i can say Mr Salman spent precious days in research before spending similar time on the analysis while ,very much appreciated by the elite but not by non governmental readers.i wish the economic and social council starts concentrating on plans and not show offs in anticipation of getting a foothold in politics.however,thou not much hope can be pegged let’s say it’s a cry in the prairies.

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Currency conundrum
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