Untangling the puzzle: how central bank interventions drive currency hyperinflation and hamper SMEs

Alaa Hamieh, Jean-François Verdié, Charbel Salloum () and Maher Al Sayah
Additional contact information
Alaa Hamieh: TBS - Toulouse Business School
Jean-François Verdié: TBS - Toulouse Business School
Charbel Salloum: Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School
Maher Al Sayah: USEK - Université Saint-Esprit de Kaslik

Post-Print from HAL

Abstract: This study undertakes an assessment of the actions taken by the Governor of the Lebanese Central Bank in response to the economic crisis in Lebanon, with a specific focus on the long-standing pegging of the Lebanese economy to the US Dollar since the 1990 s. The research employs a qualitative research approach, drawing upon published studies and official circulars issued by the Governor of the Lebanese Central Bank in response to the currency pegging process. Additionally, this study identifies the roles and responsibilities of central banks within an economy, emphasising the importance of transparency in their assessment approach. The study's findings indicate that the depreciation of the Lebanese currency was not a result of inadvertent economic factors but rather a deliberate course of action. Both the Lebanese deep state and the Governor of the Lebanese Central Bank are found to have played pivotal roles in the devaluation of the Lebanese currency, primarily through the issuance of monetary circulars and other preceding monetary measures. The practical implication of this research lies in its capacity to serve as a significant case study. It highlights the repercussions associated with currency pegging over the global economy and specifically SMEs in a geopolitically unstable and corruption-ridden environment.

Keywords: Central Bank; Foreign exchange market; Fixed exchange rate system (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Published in International Journal of Business and Emerging Markets, In press, ⟨10.1504/IJBEM.2027.10064406⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04981530

DOI: 10.1504/IJBEM.2027.10064406

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().