| This is the reason for the black market dollar ‘craze’ |
| Source : Lebanon Debyte |
date of publication :
25 Mar 2022 |
Source :
Lebanon Debyte
date of publication :
Friday 25 March 2022
The financial and banking expert, Dr. Nassib Ghobril, noted, “All those who have been affected by the decline in the dollar exchange rate during the past months, from speculators and manipulators, are taking advantage of crises today in order to achieve illegal profits, through speculation that led to the return of fluctuations in the dollar exchange rate.
He told “Lebanon Debate”, that this rise in the exchange rate of the dollar in the past days, evokes the black market and illegal speculations that have been taking place for months, before the Central Bank of Lebanon took the initiative to issue circular 161 in mid-December, as a temporary measure from Yes to the price.”
Dr. Ghobril added that, “The period of this circular was scheduled to be only two weeks, and the Central Bank took the initiative to extend it, in order to limit the price increase in the parallel market, pending taking measures by the government to enhance the climate of confidence in the national currency, and thus the issuance of the Capital Control Law. agreement with the International Monetary Fund and the implementation of an economic recovery plan.
Dr. Gabriel Odeh pointed out that “the rise in the price of the dollar is due to several factors, most notably the lack of liquidity from foreign currencies and the return of illegal speculation in the black market that is not subject to any supervision, and because of the absence of measures that enhance the confidence of the Lebanese in addition to the high demand for the dollar, knowing that The Banque du Liban secures dollars through an exchange platform.
He pointed out that “Circular 161 succeeded in canceling the margin between the price on “exchange” and the price of the dollar in the parallel market, knowing that it is a measure that the Central Bank or the banks do not claim to be the solution to the crisis, but rather a temporary measure and achieved the desired goal, as it succeeded in reducing the price of the dollar and was able to Withdrawing a large mass of about 6 billion pounds from the market, reiterating that it is a topical measure waiting for the political authority to rush to take all necessary steps to address the crisis that began with the decline in financial flows since September 2019 and escalated with the government’s decision to stumble, knowing that there are no concrete steps on the issue. The level of issuing the first and simplest procedure, which is Capital Control.
Stressing that “the banks continue to secure demand through circular 161”, Gabriel indicated that the “exchange” platform continues to work, knowing that the exit from the crisis of the high exchange rate and illegal speculation is through adopting a clear roadmap that first begins with unifying the exchange rate. The exchange, which is an essential item in the recovery plan, secondly by accelerating negotiations with the IMF, and thirdly accelerating the reform process and giving priority to supporting the economy to achieve growth so that the private sectors can catch their breath and work to attract investments.
Gabriel refused to launch any “speculation or prediction of the path of the dollar’s price in the parallel market, considering that speculation serves speculators and beneficiaries and those who work illegally and opaquely, stressing that the basis is trust and seeking by all means to restore it.”
