The “National Monetary Stability Initiative” announced, in a statement, that it met “economic bodies at the headquarters of the Beirut and Mount Lebanon Chamber, and discussed with them the proposal to establish a monetary council in Lebanon, its suitability for the current stage, and its potential repercussions on financial and monetary stability.”
The initiative was represented by its founder, Ray Debbane, founder and CEO of Invus, who presented his vision for the Monetary Board and its working mechanism, in light of the financial and monetary challenges facing Lebanon.
At the beginning of the meeting, Debbane presented the concept of the Monetary Council and the foundations on which it is based, explaining that “this system is based on binding monetary rules, full coverage of the relevant monetary mass with liquid foreign reserves, and the convertibility of the currency according to a fixed exchange rate, while preventing the use of cash issuance to finance the state’s deficit or bail out the banks.”
He called for “a transition from managing monetary stability with discretionary policies to a system governed by clear and binding rules,” considering that “the Monetary Council constitutes a framework capable of imposing monetary discipline and protecting stability from political pressures, thus enhancing the credibility of the lira and providing a more solid base for economic recovery.”
Dabbane stressed that the Monetary Council “does not constitute an alternative to the required banking, financial and structural reforms, but rather provides a stable monetary environment in which these issues can be addressed.”
Deacon
In turn, the Secretary-General of the Economic Bodies, Nicolas Chammas, delivered a speech by the Head of the Economic Bodies, former Minister Mohamed Choucair, in which he welcomed his proposal, expressing his hope that “the proposal will contribute to moving Lebanon a step forward on the path of recovery, and finding ways to consolidate and sustain financial and monetary stability,” stressing that “establishing a monetary council can provide an additional degree of immunity to the national economy.”
He stressed “the necessity of opening a serious and responsible discussion about the available options,” pointing out that “Lebanon is no longer able to continue as it is today, and that the current stage requires new and bold approaches that contribute to getting the national economy out of its crisis.”
Chammas stressed, “The economic bodies look forward to actively contributing, in cooperation with the competent authorities, to studying and discussing the project from its various aspects and dimensions, in a way that serves Lebanon’s interest and contributes to consolidating financial and monetary stability and putting the economy on the path of sustainable recovery.”
