The politics side of the equation you are missing on the NERDS side we can discuss here...follow me on this thread if you have some sunday morning patience. Cash dollars in the market are governed by the following flows:
Incoming cash coming from bank transfers and
Western Union like companies, and travellers (no more)
Outgoing cash to neighbouring countries
Outgoing cash to finance our legitimate imports Outgoing cash to finance foreign credit card payments and urgent foreign expenses of citizens.
Cash use by the parallel illegitimate economy (Hizballistan)
Cash turnover between money changers
Every dollar cash is exchanged forLebanese pounds that are coming from several sources. Hizballistan economy, people’s money at home or at banks, money pumped up (created)
by BDL through the banking system. BDL has issued two important circulars lately:
All Western Union transfers to be paid at current exchange rate – meaning that all incoming cash dollars from this source go directly to BDL rather than the money changer market.
Banks will pay dollar deposits at the current exchange rate – meaning that cash dollars from deposits from this source go to BDL rather than the market. This has meant that the cash dollar money supply in the money exchange market has dried up.
It has meant that all the cash dollars that were going to the parallel economy (Hizballistan) has dried up. Those cash dollars seaping into Hizballistan and Syria were paid for by Lebanese pounds collected from illegal imports coming from Syria,
Iran and other sources sold in the Lebanese markets for Lebanese pounds.Therefore this direct hit at the Hizballistan economy by Riad Salameh, means that he should be removed or else oblige him to change his BDL circulars.
The questions are:How could Riad Salameh take such an aggressive step? Is he backed by an authority that can protect him? Doesn’t he know that one of the tools of Hizballistan is physical elimination like he did before with big figures?
How could the market rate be manipulated violently in one day up to 4000 in the money exchange market and by whom? For this to happen, somebody must have injected dollar cash into that market at such high Lebanese pound equivalent.
If Hizbullah is injecting that cash, it is certainly unsustainable and it is counter to their policy of getting dollar cash from the market. I am not sure what his planned fact revealing press conference can do? Would it absolve him from guilt
for having financed the machiavelic schemes of the criminals for the past few decades? It is true that practically Riad Salameh is an accessory to the crime and can be prosecuted as such, but to do so means that the courts must prosecute the criminals as well.
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