Head of the Kataeb’s Economic and Social Council Jean Tawile on Monday considered that the Lebanese Pound would keep on losing its value due to political practices in general, pointing out that adopting the same destructive approach that brought the country to this deteriorated situation and printing more money to cover State’s expenses in Lebanese Pound will lead to further rise in the US dollar exchange rate.

“The intervention of the Central Bank in the market, the lack of reforms and the absence of trust with the International Monetary Fund are affecting the exchange rate of the US dollar,” Tawile said in an interview with Voice of Lebanon.

“Lebanon’s destructive approach and governance are the main reasons behind the rise in the US dollar exchange rate. This situation cannot persist as solutions exist and our country can get out of its crisis easily,” he noted.

Tawile highlighted he importance of increasing the salaries of the public sector, saying that there must be justice in dealing with the Lebanese people through reforms in State’s administrations.

“Since the political authority is unable to carry out reforms at the level of expenditures in the public sector, it has resorted to a random method that is imposing taxes without reforms. Everyone knows the negative impact of raising taxes in a random manner as it will lead to the bankruptcy of some companies and a decline in the State’s revenues. Therefore, instead of carrying out reforms and managing the crisis, the ruling authority is heading, with its destructive approach, towards random steps that will lead Lebanon to the edge of collapse,” he pointed out. 

In response to a question about the reason why the Banque du Liban did not intervene to improve the situation, Tawile considered that the Central Bank Governor and the monetary policy were under the control of the political authority that wants to delay the implementation of reforms and evade accountability, thus politicizing money and the monetary policy.

"The Lebanese are exhausted and in the end those responsible for this deteriorated situation will be held accountable. The roadmap to get out of the crisis exists, but it needs serious people to implement it,” he added.

“The Kataeb Party already presented a roadmap to secure monetary stability and it is carrying out its parliamentary duty. A president should be elected to ensure institutional order. He should present his program and conduct a dialogue between all the Lebanese,” he affirmed.

“Lebanese officials do not want to conclude an agreement with the IMF. The political authority is betting on the flow of money as a result of gas and oil exploration, although nothing is certain until now about the amount of oil and the financial feasibility. Therefore, we must change this destructive approach,” he concluded.