Jebaee Unveils the Truth

“Lebanon Debate”

Panic arose among depositors and Lebanese citizens due to news circulating about the depletion of liquidity from Lebanese banks. This depletion raises concerns surrounding the safety of salaries and people's deposits. Does this indicate that the banks are actually bankrupt and deposits have vanished? What is the truth behind these rumors?

Addressing these concerns, researcher and economist Dr. Mahmoud Jebaee clarified in an interview with "Lebanon Debate" that there is no issue whatsoever with the liquidity of circulars 158 and 166. He emphasized that this liquidity is fully secured between the Central Bank of Lebanon and banks throughout the entire duration of these circulars.

On the contrary, he points out that "the Central Bank is tirelessly working to expand the reach of beneficiaries under the circulars in the upcoming period, in collaboration with banks. The monetary reserve allocated to circulars 158 and 166, denominated in dollars, is secure without any issues. However, an increase in beneficiaries is possible in the future. This reserve could potentially be used to address the depositors' crisis once a comprehensive government plan is in place."

However, the economist highlights that "the monetary reserve in Lebanese pounds, representing the cash liquidity in local currency, is being managed by the Central Bank of Lebanon. The aim is to regulate this reserve through effective money management practices between the Central Bank and commercial banks. This strategy is designed to prevent any exacerbation or inflation of this reserve, which could potentially have negative effects on the exchange rate and lead to inflation within the market. Therefore, the Central Bank collaborates closely with banks to manage this reserve and provides support in Lebanese pounds as necessary, drawing from their assets. This support is extended to customers in Lebanese pounds, as outlined in Circular No. 151, which currently stands at 15,000 liras per dollar, or potentially at a revised rate in the future."

Therefore, Jebaee emphasizes, "There are no issues whatsoever concerning the cash liquidity in dollars in the transactions between the Central Bank of Lebanon and the banks regarding the circular. The focus is solely on managing the monetary reserve in Lebanese pounds."

He clarifies that the Acting Governor of the Central Bank of Lebanon mentioned a transitional phase. Today, the Central Bank urges the government to intervene and devise a clear plan to resolve the crisis concerning depositors. The government must take responsibility and formulate a comprehensive plan with clearly defined roles for the state, banks, and the Central Bank. This collective effort is essential to address the worsening crisis faced by depositors, as the Central Bank alone cannot tackle this issue without clarity and support from all stakeholders.

!نفاذ السيولة يتسبب بالهلع... وجباعي يوضح حقيقة الأمر