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The symptoms of collapse have begun "getting stronger" With the Central Bank of Lebanon announcing that its foreign currency reserves fell below $10 billion, to $9.72 billion at the end of August 2022.
Why are the precautions decreased?
• As revealed by banking expert Nassib Ghobril in an interview with the site "Sky News Arabia"the precautions dip Lebanon of foreign currency reflects the pressure on the Central Bank, and the countless requests to secure hard money to cover the import of fuel, wheat and some medicines.
• This decline also comes after the application of circulars that made it easier for depositors to withdraw cash dollars from their bank accounts.
Gabriel reveals that the Central Bank of Lebanon’s foreign currency reserves have decreased by 3 billion and 100 million dollars since the beginning of 2022 until the end of August, despite the measures taken by the bank to find sources to replenish its reserves in hard currencies.
continuous bleeding
And Ghobril expected the continued draining of hard currencies from the reserves, in light of the almost complete halt of the traditional sources that were feeding them, such as the flow of deposits to the banking sector and the issuance of bonds. "Eurobond" Andforeign direct investment.
And Gabriel believes that despite the decline in reserves to a low level, the Banque du Liban will not stop its intervention in the market through the platform for now. "banking" Which determines the exchange rate of the dollar, but what it will do is to limit it by setting ceilings for the sale of dollars through the platform.
He has already begun to implement this by reducing the percentage of dollars allocated to finance the importation of gasoline to only 20 percent, while importers must secure 80 percent of the parallel market.
The former deputy governor of the Banque du Liban, Ghassan Ayyash, said that the decline in the volume of Lebanon’s foreign currency reserves to below 10 billion dollars means that the Banque du Liban is in the last stage of support, noting that there is no longer a long time before the bank was forced to stop all forms of support that it provides. presents it.
Ayyash was surprised, in an interview with the website "Sky News Arabia"Some said that the decline in reserves below 10 billion dollars means that the Banque du Liban crossed the red line, pointing out that "Crossing the red line started in 2015 when the bank exhausted all its own reserves, and then started using its bank deposits, i.e. Depositors’ money".
Unparalleled problem
According to Ayyash, the liabilities of the Banque du Liban are more than the assets, and"Therefore, we are facing a similar monetary and banking problem"He called for focusing on a medium-term economic plan in coordination with the International Monetary Fund to get out of the crisis, return a large part of the deposits and force the political class to commit to a real program of reform.
The banking expert considered that "The purpose of this comprehensive operation is to restore life to the Lebanese economy in order to get out of its deadly crisis"as he put it.
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The symptoms of the collapse began to “increase in severity” with the announcement by the Central Bank of Lebanon that its foreign exchange reserves fell to less than 10 billion dollars, recording 9.72 billion at the end of August 2022.
Why are the precautions decreased?
• As revealed by banking expert Nassib Ghobril in an interview with “Sky News Arabia”, the decline in reserves Lebanon of foreign currency reflects the pressure on the Central Bank, and the countless requests to secure hard money to cover the import of fuel, wheat and some medicines.
• This decline also comes after the application of circulars that made it easier for depositors to withdraw cash dollars from their bank accounts.
Gabriel reveals that the Central Bank of Lebanon’s foreign currency reserves have decreased by 3 billion and 100 million dollars since the beginning of 2022 until the end of August, despite the measures taken by the bank to find sources to replenish its reserves in hard currencies.
continuous bleeding
Ghobril expected the continuation of the drain of hard currencies from the reserves, in light of the almost complete halt of the traditional sources that were feeding them, such as the flow of deposits to the banking sector and the issuance of “Eurobond” bonds, andforeign direct investment.
Gabriel believes that despite the decline in reserves to a low level, the Banque du Liban will not currently stop its intervention in the market through the “exchange” platform that determines the exchange rate of the dollar, but rather what it will do is to limit it by setting ceilings for dollar sales via the platform.
He has already begun to implement this by reducing the percentage of dollars allocated to finance the importation of gasoline to only 20 percent, while importers must secure 80 percent of the parallel market.
The former deputy governor of the Banque du Liban, Ghassan Ayyash, said that the decline in the volume of Lebanon’s foreign currency reserves to below 10 billion dollars means that the Banque du Liban is in the last stage of support, noting that there is no longer a long time before the bank was forced to stop all forms of support that it provides. presents it.
Ayyash was surprised, in an interview with “Sky News Arabia”, that some people said that the decline in reserves below 10 billion dollars means that the Banque du Liban crossed the red line, pointing out that “crossing the red line began since 2015 when the bank exhausted all its special reserves, and then began Using his bank deposits, i.e. Depositors’ money“.
Unparalleled problem
According to Ayyash, the liabilities in the Banque du Liban are more than the assets, and “therefore, we are facing a similar monetary and banking problem,” calling for focusing on a medium-term economic plan in coordination with the International Monetary Fund to get out of the crisis, return a large part of deposits and force the political class To commit to a real program of reform.
The banking expert considered that “the purpose of this comprehensive operation is to restore life to the Lebanese economy in order to get out of its deadly crisis,” as he put it.