These are the reasons for the decline in the price of the dollar on the black market

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The black market is witnessing a relative “calm” at the exchange rate level. The price of the dollar recorded a further decline, to levels that ranged between 7400 and 7600 liras. Observers have explained this relative decline in two basic ways: First, the continued flow of dollars through the Lebanese returning daily through the airport. Second, due to the start of the implementation of the project to support the list of consumer goods, which removed the big merchants and importers from the black market, and transferred them to dealing with banks. Noting that the cost of this support is significant and harmful to the cash reserve in the Bank of Lebanon, as evidenced by the decline in this reserve, according to the latest report on the conditions of the Central Bank of Lebanon.

Beyond that, the chief economist for the Middle East and North Africa at the Institute of International Finance, Grabes-Iradian, points out that a large part of those goods supported by the Bank of Lebanon, especially fuel, are being smuggled into Syria, depleting the diminishing foreign exchange reserves in a bank. Lebanon, and harnesses the central bank’s reserves to support the Syrian economy. ”

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