Steve Hanke, Professor of Applied Economics at the University of Johns Hopkins, stated that Lebanon is in the middle of a major currency crisis. The Lebanese pound is completely melted down. 

Professor Hanke recommended the Currency board system as a solution. Implementing this system would put an end to the crisis in 24 hours, and lower down the inflation rate. This system changes the law that governs the central bank. He explained that the Lebanese pound would still exist, be backed 100% with USD reserves, be tradable at a fixed rate with USD and traded freely without any restrictions. 

In addition, Hanke asserted that the efficiency of this system depends on the exchange rate set between the LBP and USD. He asserted that the central bank should not emit any money and the government should let the exchange rate fluctuate freely for 30 days. After this 30 days period a group of experts would set the rate at an appropriate level.

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