What did Riad Salameh say?
Governor of the Central Bank (BDL) Riad Salameh addressed a large number of financial and economic issues during a talk show on MTV hosted by Marcel Ghanem. Salameh said that no economic collapse is imminent. He said that BDL is keen to prevent its dollar injection into the economy from being transferred abroad. Outbound transfers by politicians and state officials will be investigated. Interest rates on lending to the private sector will be reduced. The Governor reassured depositors that no haircuts on deposits are currently being contemplated.
It’s a crisis, not a collapse
There is a crisis, there are challenges, but it is not a collapse. The country can recover quickly because a large chunk of its economy is abroad. But poverty will increase if the current crisis lingers, so the government must take measures to support social stability. If confidence is lost, people will not continue saving in lira. The exchange rate of the lira will remain stable. Stabilizing the lira is costly but the decision to have a stable currency is a State policy and BDL is of the same opinion. The stability of the lira costs less than a floating rate, which,
