Lebanon: Central Bank to Provide USD for Imports at Rate of 3,200 Pounds to Reduce Food Prices

Published May 15th, 2020 - 06:30 GMT
Lebanon: Central Bank to Provide USD for Imports at Rate of 3,200 Pounds to Reduce Fo
The Lebanese pound has lost more than 60% of its value since October, when the country's long-brewingeconomic troubles grew into a major financial and banking crisis. (Shutterstock)
Highlights
This comes as part of efforts to rein in spiralling inflation as the local currency collapses.

The Lebanese central bank revealed on Friday that it's working to provide dollars for imports at an exchange rate of 3,200 Lebanese pounds to reduce food prices.

This comes as part of efforts to rein in spiralling inflation as the local currency collapses.

The central bank is already providing dollars for imports of wheat, fuel and medicine at a rate of 1,507.5 pounds - an official peg that has remained in place even as the pound has slumped on the parallel market.

"Banque du Liban will continue to inject dollar banknotes that it acquires via the banks with the aim of financing imports at the price of 3,200 Lebanese pounds per US dollar with the aim of reducing the price of food products," the central bank said in a statement, Reuters reported.

Dollars are currently changing hands on a parallel market at ore than 4,000 pounds.

The Lebanese pound has lost more than 60% of its value since October, when the country's long-brewingeconomic troubles grew into a major financial and banking crisis.

A government plan for getting Lebanon out of the crisis is based on a shift to a flexible exchange rate, although only in the "coming period" - and the currency peg will be maintained for now, Finance Minister Ghazi Wazni said last week.


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

You may also like