LIMS explained that Lebanon imports most of its wheat from Mariupol on the Sea of Azov and Odessa on the Black Sea. The war disrupted the shipment of grain from those regions leading to delays in delivery. So far, the delays are logistical due to the inability of ships to leave the harbor. However, if the war lasts several months, farmers in Ukraine will not be able to harvest, which would create significant disruption. Alternative sources of wheat such as India, Latin America, and North America will cost more given the increase in the international price of the commodity, the higher transportation and insurance costs, and the longer route of the shipment. Likewise, Lebanon imports fuel from the region of the black sea. Global fuel prices will be sensed at the tank and in electricity prices. Electricity generators will resort to longer rationing hours to maintain the monthly bill affordable for the median household.

LIMS added that the fate of bread hangs in the hand of the government. Currently, the Ministry of Economy sets the price of bread way below the actual cost and then subsides wheat to make it up for bakeries. The central bank foots the bill draining Lebanon's foreign exchange reserves. LIMS recommended allowing higher prices of bread and progressively removing subsidies because the central bank cannot finance this program anymore. Alternatively, the country can suffer from bread outages if the ministry maintains the price below cost and cannot finance the bakeries' losses.

Furthermore, LIMS highlighted that since the start of the war in Ukraine, the loss of FX reserves accelerated, given the need to finance a more expensive fuel bill and an ever-increasing wheat subsidy. A general distrust in both monetary and fiscal authorities compounded this external factor. The constant depletion of the central bank's reserves fuels the doubt in the local institutions.

Later, BdL issued a statement declaring the willingness to inject an unlimited amount of dollars to defend the exchange rate, which calmed the market. LIMS interpreted this matter as proof that the Lebanese pound is overvalued and does not reflect the reality of the market. In the end, we will reach a stage where the depositors' dollars, used to stabilize the currency, will expire, and the central bank will no longer be able to intervene, which will lead to another uncontrolled devaluation. Therefore, Lebanon should reform its monetary policy and move from the current discretionary one to a rule-based monetary arrangement by adopting a currency board. Such a reform would allow for a stable exchange rate regardless of internal and external shocks.

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LIMS focused on the civil court rulings about the illegal restrictions imposed by the banks on depositors and viewed the capital control law as a shield in favor of banks to protect them from depositors’ lawsuits. However, this law does not protect depositors as it strips them of their right to withdraw their deposits without any protection in return. Therefore, LIMS argued that capital controls should be accompanied by creating a currency board. A currency board would stabilize the exchange rate preventing further loss of purchasing power and setting the base for the reconstitution of foreign exchange reserves. LIMS suggested that the government strike a deal with the banks in which banks accept establishing a currency board, thus protecting depositors’ remaining foreign exchange reserves. In return, a capital control law will be issued to protect the banks from lawsuits.

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The government submitted a plan that focused exclusively on the banking crisis and suggested a haircut on depositors that would limit bank losses. The plan included a forced conversion of dollar-denominated deposits into Lebanese pounds at variable exchange rates (also called "lirafication" of deposits). LIMS explained that implementing this scheme would cause considerable losses to depositors and further inflation in the national currency. LIMS argued that any reform in Lebanon needs to start by forming a currency board to achieve a stable exchange rate that would act as a bedrock for other reforms. Solving the banking crisis under a currency board will reduce depositors’ haircut since it protects and increase the central bank's reserves and blocks the government’s attempt to squander them.

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For example, the electricity monopoly, Electricité du Liban (EDL), has been increasing outages and power rationing; and contrary to popular belief, the cost of EDL-generated electricity is not cheaper than private generators when the technical and non-technical losses are taken into account. With unreliable and expensive electricity, telecommunication, and the internet, most productive sectors are in stagnation. Passing a law that cancels exclusive contracts will have little to no effect if the issue of public monopolies is left unaddressed.

Another limit to free competition is the government's suggestion to increase tariffs on imports. High import tariffs are a roadblock that raises prices for local consumers and producers and encourages smuggling goods to Lebanon rather than going through legal routes. Furthermore, higher tariffs will put importing businesses out of work and reduce the number of traders to those capable of lowering the quality for consumers and/or offering high prices. LIMS recommended removing or minimalizing import tariffs to enhance competition, reduce prices, stimulate business and broaden consumption choices. Instead of increasing tariffs, the government should focus on cutting public spending. For instance, the government spends large sums on rent for public institutions knowing that the government owns more than 200 empty properties in Beirut alone. Also, the project of rebuilding the train tracks and system reemerged, driven by possible funding from the Spanish government. However, the cost of running the railways would be immense and will put extra pressure on the Lebanese budget, which is already being funded through an inflationary deficit.

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