The Central Bank is intervening soon to control the currency … a sudden improvement of the Lebanese currency, and this exchange rate


Under the title “A sudden improvement of the Lebanese currency after the dollar approached the threshold of 5 thousand pounds,” Ali Zain Al-Din wrote in the newspaper “Asharq Al-Awsat” Limited trades outside the official and parallel markets showed a significant improvement in the exchange rate of the Lebanese pound against the dollar at the end of the week, with the influence of Streaming banking information about a strong and imminent intervention of the central bank in the exchange market, coinciding with the launch of the online trading platform early this week.

Bankers assured “Asharq Al-Awsat” that the restoration of the central bank’s role in curbing speculation and protecting the equilibrium of the exchange market through direct intervention, selling dollars from its reserves, can restore order to trades and confine them to flexible and specific price margins that are determined through the online platform and in cooperation with the banking system directly and with Disciplined banking companies committed to generalizing the monetary authority.
This trend, if its facts are proven in the coming days, will represent a response by the Governor of the Banque du Liban Riad Salameh to a previous request from Prime Minister Hassan Diab to use the savings made from the cost of covering fuel imports after the large drop in global oil prices to pump cash in dollars into the markets , And with up to a billion dollars when necessary, with the aim of reducing the dire deterioration in the exchange rate of the lira.

These anticipations are consistent with parallel information about Salama’s participation personally starting this week in the scheduled rounds of negotiations via “video conferencing” technology with the IMF experts, after he previously stated that he would not participate in its formulation, and he merely sent delegates from the Central Bank to join the Lebanese negotiating team headed by the Minister of Finance Ghazi weight.
Indeed, despite the binding health closure since last Thursday and the weekend, the banking companies ’strike continued to protest against the arrests that included their captain Mahmoud Murad,“ Al-Sharq Al-Awsat ”witnessed an important shift in the“ mood ”of dollar exchanges through mobile money changers and applications on phones and social media, as it shrank Margins, respectively, from about 4400 pounds to about 3700 pounds per dollar. This fully reflects the validity of rumors before the close, with the dollar quickly reaching the threshold of 5,000 liras.
And because of the long vacation, it was not possible to obtain accurate information from the central bank, which is also busy with the arrest of the director of monetary operations, Mazen Hamdan, against the background of investigations conducted by the Financial Prosecutor Ali Ibrahim regarding the manipulation of the dollar price, a bank official expected that the direct intervention of the Central would formally announce the launch of the pricing platform and issue A memorandum of instructions for banks clarifying the organizational and logistical aspects and specifying the ceilings for transactions for individuals and companies and the controls of buying and selling operations from the public, which require a few days to verify their suitability before proceeding with implementation.
The banker noticed that the mere fact that information about the re-entry into the currency market had brought about an immediate shock in the “virtual” exchange market. This confirms that the ability of the central bank to control the official currency market is still very influential despite the keenness to codify the disposal of reserves with usable hard currencies amounting to about $ 20 billion currently, according to the financial data that Salama submitted to the government.
And about his expectations for the price margins that will be adopted, the banker explained that “the central bank has previously priced the dollar imported from non-banking institutions to transfer money at 3,200 pounds per dollar. This price is likely to be indicative to determine the ceiling of the intervention, which can increase to about 3,500 Lira, i.e. the proposed price within the assumptions mentioned in the government’s plan that is being discussed with the experts of the International Monetary Fund. It is an appropriate price to get out of the spiral of speculation currently prevailing in the markets. Note that the official price will remain constant, until further notice, at 1520 pounds in relation to transactions Commodity imports Covered by the Central Bank. “


Please enter your comment!
Please enter your name here