Businessman Husni Bey stated that any currency in the world begins its journey of collapse when government spending exceeds public revenues, explaining that the central bank’s resort to financing the deficit by creating virtual money or printing new currency exacerbates the crisis.
He added that insisting on an administrative exchange rate that does not reflect economic reality leads to the emergence of a large price gap, which a few exploit to achieve gains at the expense of market stability.
Bey pointed out that these factors combined represent the first link in the chain of currency collapse, stressing that addressing the imbalance requires controlling public spending and linking monetary policies to actual economic facts.
central bank
The central bank is a nation’s primary monetary authority, responsible for managing currency, controlling interest rates, and ensuring financial stability. Its modern history began with institutions like Sweden’s Riksbank (1668) and the Bank of England (1694), which were established to fund government debt and regulate commercial banks. Today, central banks play a crucial role in steering a country’s economy through monetary policy.
