Beirut, December 27, 2022 (Xinhua) – The Central Bank of Lebanon announced today (Tuesday) the reduction of the exchange rate of the lira against the US dollar, in a step to counter the decline in the price of the local currency in the parallel market.
A statement by the Central Bank stated that it had reduced the exchange rate of the lira against the US dollar through the “Sarafa” platform, to 38 thousand pounds per dollar, an increase of 6 thousand and 800 pounds from the end of last week’s trading.
The statement indicated that the rise in the parallel market caused inflation in the markets, which harmed the Lebanese citizen, since prices in Lebanon are linked to the exchange rate of the dollar.
And the Central Bank allowed the sale of dollars to all individuals and institutions at the price of the “exchange” platform in commercial banks until it is changed, without specifying a date for that.
This step came after the exchange rate of the dollar recorded an increase of two thousand pounds in the parallel market in three days during the Christmas holiday.
The bank stated in a statement that speculative operations in the parallel market, in addition to dollar smuggling operations outside the country, were reflected in a decline in the exchange rate of the Lebanese pound against the dollar in the past three days.
In turn, Central Bank Governor Riad Salameh confirmed, in a statement, that the bank will sell dollars at an exchange rate against Lebanese pounds without a ceiling on the value of operations.
Salameh said, “There are no conditions related to the implementation of these operations, which will be carried out automatically when the banks submit Lebanese pounds to the Banque du Liban, and in exchange they will receive dollars immediately.”
The central bank’s decision, according to phone applications spread on social media groups, caused an immediate shock in the parallel market, and the dollar fell in it from 47,800 pounds to about 42,000 pounds, before returning to 44,500 pounds.
In May 2021, the Banque du Liban launched a “banking” platform to complete the buying and selling of the dollar at a price that it determines according to supply and demand, provided that the bank intervenes when necessary.
In light of the lack of unification of the exchange rate of the US dollar, Lebanon is witnessing 5 prices for the dollar, as the official exchange rate is 1515 pounds, while the bank deposit dollar is spent at a value of 8 thousand pounds and about 38 thousand on the “exchange” platform of the Central Bank, while it exceeds 44 thousand in the market. The dollar, on the basis of which the fees for goods entering the country are paid, is equal to 15,000 pounds.
Since 2019, Lebanon has been witnessing an economic collapse, which the World Bank ranked among the worst in the world since the middle of the 19th century.