Lebanon’s Central Bank Secures Dollars to Cover Imports of Fuel, Wheat and Medicine

Published October 3rd, 2019 - 07:10 GMT
The circular will certainly reduce the pressure on dollar demand at currency exchange shops
The circular will certainly reduce the pressure on dollar demand at currency exchange shops. (Shutterstock)
Highlights
The bank's move aims to ease the demand for dollars at a time when many Lebanese are rushing to exchange shops to convert their local currency into dollars.

Lebanon's Central Bank has issued guarantees to secure US dollars for local banks at the fixed official rate that would cover imports of fuel, wheat and medicine.

{"preview_thumbnail":"https://cdn.flowplayer.com/6684a05f-6468-4ecd-87d5-a748773282a3/i/v-i-9…","video_id":"995a3147-c246-4af2-9c37-ed6407bdb75f","player_id":"8ca46225-42a2-4245-9c20-7850ae937431","provider":"flowplayer","video":"10 Highest Cinema Ticket Prices Around the World"}

The bank's move on Tuesday aims to ease the demand for dollars at a time when many Lebanese are rushing to exchange shops to convert their local currency into dollars.

Lebanon witnessed on Sunday widespread protests over a worsening economic crisis, compounded by worries that the country's dollar-reliant currency is losing value for the first time in more than two decades.

Rates of 1,600 or higher were cited last week but two sources said on Monday levels had fallen back to 1,570.

The capital Beirut was paralyzed during Sunday's demonstrations as protesters blocked main roads with burning tires. Roads were also blocked in other parts of the country.

The Central Bank said the imports it's securing hard currency for are "only for local consumption."

The move will cover only imports into Lebanon amid reports that gasoline and wheat are being smuggled to Syria, which is under US and European sanctions.

Central Bank Governor Riad Salameh, speaking after a meeting with President Michel Aoun in Baabda on Monday, said the circular will organize the provision of dollars to banks at the official rate.

The circular will certainly reduce the pressure on dollar demand at currency exchange shops, Salameh said in a statement from the presidency.


Copyright © Saudi Research and Publishing Co. All rights reserved.

You may also like