Why didn’t the 500,000 and the million see the light?

The Bank of Lebanon recently introduced a new note of the denomination of one hundred thousand Lebanese pounds, in a smaller size than it was previously, and it became in circulation as of January 2, 2024, after assurances that the “Central Bank” would move to print two notes of the denomination of 500 thousand and one million pounds. So why was it postponed? This subject?

In this context, the financial and economic expert, Dr. Bilal Alama, pointed out that “talk about printing banknotes of large denominations, i.e. the 500 thousand and one million liras that was previously talked about, has been dropped from circulation because this matter requires a law in the House of Representatives, and this matter is not currently possible.” With all the crises and internal disputes that Lebanon is experiencing.”

Alama pointed out in an interview with “Lebanon 24” that “things are not currently ready for this proposal, and therefore the new 100,000 note has been sufficient, and large quantities of it have been printed.”

He added: “In my opinion, there will not be any printing of new banknotes in the near term except after the restructuring of the Lebanese economy, especially since all things in Lebanon have become “dollarized” and there is no longer a need for liquidity in the Lebanese pound,” indicating that “when liquidity in the Lebanese pound moves automatically.” The price of the dollar is moving, so the issue is currently postponed.”