After a long justification in his press conference, the caretaker Minister of Economy and Trade, Amin Salam, “dollar” the prices of food commodities, in a move that threatens the food security of the citizen, and leads to a collapse in his national currency, especially in the absence of official control and enforcement of the law.
Salam, who reassured the Lebanese that pricing in dollars maintains the price, without linking it to a rise in the exchange rate while preventing the addition of margins in pounds, did not tell them that no one could guarantee that merchants would not manipulate commodity prices in the first place, and when he also indicated that this procedure is exceptional and for a specific period of time. Thus, he confirms that we are in a country where the decision automatically becomes a norm and a fait accompli.
So, after a long wait, the Syndicate of Foodstuff Importers and other parties succeeded in persuading the Ministry of Economy and Trade to dollarize food commodities , provided that payment is made in Lebanese pounds according to the market exchange rate or in cash dollars, and away from the advantages that only importers see, which are summarized in the fact that the decision will control The chaos in pricing and the fluctuation of prices from one moment to another, the decision did not clarify: How will the decision prevent price fluctuations, in light of the fluctuation of the dollar exchange rate? And most importantly, who will guarantee the commitment of merchants in times of chaos?
Nima: Arbitrary decisions increase
put pressure on the citizen
“What is this decision?” With these words, the Monitoring Officer and Vice President of the Consumer Protection Association, Dr. Nada Nehme, expressed the association’s position rejecting the decision, pointing out that no country in the world stands with merchants except Lebanon, stressing that these arbitrary decisions by officials increase Pressure on the citizen, especially with the collapse of his purchasing power, which gives way to the merchant to play more with prices, in the absence of any oversight mechanism, and here we enter the “chaotic economy”, and it was better for officials to develop an economic plan before going to measures to protect the merchant.
Nehme pointed out that if the prices of vegetables and fruits were not acceptable, people would starve, and that laws prevent pricing in dollars, and that this was covered up by issuing a decision, noting that handing over the economy to merchants in dollars is a dangerous issue, which will lead to huge increases in prices under the pretext that “it is rising and falling.” dollar,” stressing that the ministry listens to merchants and does not listen to people, and that the Minister of Economy has never “invited us to any meeting as representatives of the people, as he only invites merchants and agrees with them.”
On January 31, the Consumer Protection Association issued a statement in which it considered that the proposal appears correct on the surface, as the price of the commodity is determined according to the price of the dollar at the moment of sale, and thus the merchant cannot manipulate the price, otherwise the ministry’s employees will be able to intervene and arrest the merchant red-handed, but she noticed On the other hand, the plan has many obstacles, including: “According to what price will the dollar be calculated? A platform, a black market, or a dollar for 8, 12, or 15 thousand pounds? And the black market price according to any reference? With the possibility of changing the price from one minute to the next…” She added: “Who will determine the price of the commodity in dollars, is it the merchant and according to invoices that will be mostly forged? And which price will the merchant adopt, the main importer, the middleman, or the small one?... Practically every merchant will have his own price, and he will set it according to his interest. And many merchants, if not all of them, will set the price, that is, a price with a large profit margin.
The association also pointed out that the ministry will not be able to control dollarization at all, but rather it will only gift merchants with a sharp weapon that allows them to manage the commercial process according to their interests...as the minister gives merchants and banks dollarization on a plate of gold...and suggested a solution:
- The immediate approval by the authority of a programmed support plan for the industrial and agricultural sector and the leading technology companies, while investing the largest possible amounts in them, which will allow exports, increase the volume of hard currencies, and improve the trade balance deficit.
– Accountability of those responsible for the collapse and recovery of looted and smuggled wealth.
- Opening the door to competition wide and lifting the obstacles imposed by political and commercial monopolies in front of the Lebanese diaspora to participate in competition and the country's renaissance.
- Reshaping the state outside the sectarian restriction as stipulated in the constitution.
She concluded her statement by saying that dollarization is just an additional escape that the sectarian authority seeks to escape from its responsibility after three years and five months of collapse.
Faheili: The decision solves the problems of the owners of “supermarkets”
shops and food importers
“The dollarization of prices is a blessing for merchants and a curse for the citizen,” in the opinion of economic researcher and banking risk expert Dr. Muhammad Fahili, who told Al Diyar that the components of the private sector continue to flee forward and refrain from practicing self-censorship. The demand for import subsidies in 2021 was in their interest and the one most affected Among them was the citizen, and today they are demanding the dollarization of prices.
He continued, "Beware!" Dollar pricing for consumer goods will solve the problems of the owners of “supermarkets”, shops and food importers, but it will certainly push the local currency into the abyss more and more, and there will be no pounds left to buy dollars! This is the destruction of the citizen and the country.
Fahili explained that during the past three years, the Lebanese pound has lost its ability to function as a “store of value” and as a “standard for deferred payments” due to the loss of confidence in the country that supports the currency, despite all that Lebanon possesses of gold. Nevertheless, it is still accepted, at least in part, as a "Unit of Account" and a "Medium of Exchange". This degree of dignity of the national currency must be preserved to leave even a glimmer of hope to restore confidence in it.
Fighting the dollar will not protect the lira
Fahili pointed out that fighting the dollar will not protect the Lebanese pound, as we have to find a way to make the pound the preferred or used currency, when it comes to settling payments in local stores, and this must be the case whether prices are high or higher, or the dollar is strong. Stronger mother! He said that controlling prices (dollarization of prices is a form of controlling them) complicates matters, as it does not curb the rise in prices, but rather activates the black market movement in foodstuffs, and does not prevent fluctuations or disturbances in prices, stressing that it is wrong to put consumables Fundamentals are at the mercy of monopolists and speculators in the exchange market, especially since the competent authority (Banque du Liban) has recognized that the economy with all its components has become at the mercy of monopolists, speculators and those who control WhatsApp applications.
Despite the seriousness of the economic situation, Fahili asserts that solutions exist, including: activating the payment methods available through the banking sector (card, checks, transfer), with a minimum amount in Lebanese pounds and to pay consumption bills, which gives the pound an advantage over the dollar in consumption, and a return to “inclusivity.” The financial accounts are in Lebanese pounds and limit what the citizen suffers from today, which is “financial exclusion.” Closing accounts for the settlement of salaries in pounds contributed to the deterioration of the national currency, stressing that reform is the only wood of Lebanon’s salvation from the crises it is floundering with.
In sum, no one spoke about the positivity of the decision that is supposed to come into force after a week, except for the proponents of this proposal, i.e. the merchants with their various economic and union names, and until the white thread emerges from the black in this matter, the consumer will remain at the mercy of the merchants, but this time with a dollar stick, While those in power continue to flee forward!
no comment