Once the decree for forming a new government was signed, the Lebanese pound have witnessed a remarkable rise against the dollar on the black-market, from 18,000 LBP on the eve of the government formation to 14,500 LBP, to return to 16,700 currently.
Exchange dealers have witnessed a tremendous demand for selling dollars, before its decline amid an optimistic and positive atmosphere that surrounded the government process in the morning.
The question remains in this context: Will the psychological effect of the new government on the exchange rate remain in the coming days, and are there dollars to be sold at a low exchange rate?
Since curbing the financial and economic meltdown will be the first task of the new government, what are the urgent priorities on the financial, monetary and economic levels?
To answer these questions, we contacted the economist and former official at the International Monetary Fund (IMF) Dr. Mounir Rashid.