Lebanon Opportunities

The key to the crisis Where do the dollars go?

he dollar scarcity and the sharp rise in its price created a panic in the market as people feared that the collapse of the lira that took place between the late 1980s and early 1990s would be repeated. , Chairman of the Banking Control Commission at BDL, said that there is no dollar crisis in the country and that it is a problem of a scarcity of dollars in circulation outside of the banking system. He said that the amount of dollars in the hands of people outside of the banking system is extremely small in comparison to the overall dollar liquidity available in the banks, whose customer deposits in foreign currencies stood at nearly $123 billion at the end of July. Foreign currency deposits account for 72 percent of overall customer deposits in commercial banks. There is no problem at the level of dollar deposits in banks, people can convert their deposits easily from liras into dollars at the official price no matter their size, Hammoud said. The proposed remedies for solving the crisis involve boosting economic growth and reducing the country’s twin deficit, which consists of the current account deficit and the fiscal deficit. Substantial capital inflows will reduce the current account deficit and will help alleviate the crisis or even result in a full recovery. A quick solution is

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