| 18 June 2024, Tuesday |

“Falling commodities prices will result from a stable dollar exchange rate,” Bohsali tells SBI

Hani Bohsali, the head of the Food Supervisors Syndicate, said in an interview with Sawt Beirut International that the dollar exchange rate dropped following the declaration of the previous governor of Lebanon, but then started to rise again. The merchants refrained from prosecuting the products pricing them at LBP 40,000, pointing out that there might be some stores and supermarkets that charged that amount. In this case, the oversight authorities would be responsible for pursuing them, but they are currently unable to do so.

Given the contraction of the commercial sector, Bohsali thought that when a merchant keeps the prices of his goods high, the exchange rate is low because he hurts himself before he hurts others since fewer people will buy because they will wait for a price drop after the low exchange rate.

Bohsali emphasized the necessity for complete solutions rather than fragmented solutions like decrees, decisions, and circulars, whose effects do not last for more than a few days, in order to allow at least five days following the low exchange rate for items to be correctly priced.

Bohsali reassured that if the dollar exchange rate stabilizes and does not rise again, the prices of commodities will automatically decrease.

Why do businesses hurry to raise prices when the dollar exchange rate is high? The answer is simple. Because the state is powerless to regulate both prices and the dollar exchange rate.

  • Sawt Beirut International