Exclusive: Abdullah Al-Hassi: “Can the Central Bank Defend the New Exchange Rate if it Occurs?”

The economic expert Abdullah Al-Hassi spoke to our source about the increase in the exchange rate, saying: “After the circulating and almost confirmed news about changing the exchange rate to 5.90 dinars per dollar, there remain several questions, the most important of which is: Can the central bank defend this new rate if it occurs? If the answer is yes, then I expect the exchange rate to partially stabilize above the official rate by a not significant margin. However, if it cannot defend this value and cannot provide the required currency, then the exchange rate difference will continue to rise, possibly reaching high levels that we have not seen in a while.”

He added: “The other logical question is, will the executive bodies east and west stop consumption spending and employment? If spending does not stop, it is expected that the demand for currency will increase, putting the central bank in a new challenge to confront the expenditures required by governments and thus the pressure on the currency obtained from oil sales.”

Al-Hassi said during his speech: “Regardless of any of the scenarios, the ordinary citizen will continue to bear the direct cost, due to political conflicts and economic challenges, and this exchange rate deterioration will not stop except with bold and sustainable corrective measures.”