“To return the lira to tell” … Is it sufficient to delete the zeros?

Maria Rahhal – MTV

What if it became Dollar One equals only 9 pounds? This question returned to float again on the Lebanese scene after Syria announced its decision to delete zerine from its currency, and to open the discussion about the possibility of applying a similar step in Lebanon amid a continuous financial crisis. This step appears simple on paper, but it carries great effects on citizens ’daily lives, on prices, and on the way of dealing with money. Is this process sufficient to restore confidence in the Lebanese pounds?

In a special interview with MTV, the economist and strategic expert in the global stock market markets, Dr. Jihad Al -Hakim, considers that talking about the deletion of zerine from the Lebanese lira is a technical step aimed primarily to “simplify daily transactions and huge bills and facilitate accounting operations, but it does not represent a solution to the economic and monetary crisis.” Al -Hakim explained that “this process does not affect the purchasing power of the citizen, does not stop inflation, and does not restore confidence in the lira if it is not attached to a comprehensive and sustainable reform plan.”
He pointed out that “the success of any currency reassurance process depends on achieving real financial and critical stability, which includes controlling the general budget, unifying the exchange rate, restructuring the banking sector, and effectively monitoring inflation. In the event that these steps are implemented, the re -evaluation becomes a natural step to complete the path of economic reform.” It also happened in Türkiye’s experience in 2005, when he deleted six zeros, after real financial stability, to simplify the monetary system without harming the economy.
He added that “the issuance of larger banknotes reduces the daily burden on citizens and merchants by reducing the number of monetary papers circulating, but it does not change the currency unit or address the problems of trust.” He warned that the deletion of the zeros before achieving the basic reforms, as it happened in part in the experiences of Iran, Syria and Latin America, leads to “short -term results and often exacerbates inflation and losing confidence in the currency.”
Al -Hakim stressed that any step to re -evaluate the lira must be accompanied by a legal and accounting plan, which includes a transitional period of double pricing, strict rules to prevent prices from raising, and a strategy to deal with the dollar by providing attractive savings tools in the lira. He added that transparent communication with citizens is necessary to clarify that the deletion of zeros does not increase wealth, but rather facilitates financial dealing and reflects stability if it is actually present.

“The lira is back to tell” a day that accompanies real steps: a comprehensive financial reform, control the deficit, and restore confidence in banks and currency. Without these reforms, any deletion of zeros or the issuance of larger papers remains just an interface without a soul. As for reform, the lira regains its voice and its presence in the lives of the Lebanese, carrying their hopes towards real economic stability.

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