Ministry of Finance:
No risk of lira collapse

Yassine Jaber: “There is a careful

and wise management of the money supply”

The Minister of Finance Yassine Jaber has moved to quell market anxieties, asserting there is no risk of a sudden or massive spike in the USD to lira (LL) exchange rate. Despite the ongoing regional conflict and economic pressures, officials state that the monetary situation remains under tight control through a deliberate policy of ‘liquidity austerity’.

Strategic grip on the lira
At the heart of this stability is a coordinated effort between the Ministry of Finance and the Central Bank (BDL) to manage the LL57 trillion (equivalent to $637 million), currently in circulation. By strictly limiting the injection of local currency into the market, authorities are effectively starving speculators of the liquidity needed to purchase dollars.

“This is a careful and wise management of the money supply,” the Minister said. He said his daily monitoring of Interbank interest rates serves as a primary safeguard. As long as these rates remain stable or high, it signals that there is no excess liquidity being used to bet against the national currency.

Prioritizing the war budget
While the broader policy is one of fiscal restraint, the Minister outlined four critical pillars where spending remains a priority to ensure social and institutional stability:
• Public Sector Stability: Public sector salaries continue to be paid consistently in USD. In a move to bolster consumer confidence, the Minister confirmed that payments are being processed ahead of schedule to coincide with upcoming holidays
• Emergency Healthcare: Special funding has been carved out for the health sector, specifically to ensure that any individuals injured or affected by current military events receive comprehensive medical treatment at no cost
• Humanitarian Aid: With more than 100,000 displaced persons currently residing in shelters, the State is prioritizing the funding of essential relief and support services
• Essential Infrastructure: To prevent a total State collapse, funds are being directed toward maintaining critical utilities, including Internet connectivity and waste management.
A bridge to future reform

The Minister characterized the current phase as a “difficult period” that must be navigated with extreme caution. The strategy is to maintain a “calm” financial environment until the current crisis subsides. Officials indicated that once the security situation stabilizes, the government intends to shift from this defensive posture toward implementing broader, structural economic changes.

The minister's message to the public and the markets is clear: the exchange rate is being protected by a wall of controlled liquidity, and rumors of a looming currency collapse are dismissed as unfounded.