Three Lost Years

Overdue Solutions to Lebanon’s Monetary Crisis, by Jean Tawilé

This policy paper proposes a path to monetary stability in Lebanon in order to halt spiraling hyperinflation and reform the banking sector. It also explains how the country's money supply is manipulated to prevent and delay reforms, as well as sheds light on money's politicization.
Since 2019, Lebanon has descended into the worst economic crisis in its history. A hit-hard population has suffered greatly, while political leaders have only continued to take advantage of the crisis to further their own interests. This policy brief seeks to illuminate the politicization of money and explains how the country’s elite political class has manipulated the money supply to prevent and delay badly needed reforms that could put Lebanon on a path to stability and recovery. Policy recommendations are included to regain control of the country’s money supply, halt spiraling hyperinflation, and reform the banking sector. It is absolutely essential that all relevant stakeholders, including the government of Lebanon, the Central Bank, and private sector banks, collaborate on the implementation of the reforms listed below. Absent these critical reforms, full dollarization of the economy is the only remaining path.

Nour Alwan



nour.alwan@kas.de +961 (0)1 388 095/6