The price of the dollar fell in Lebanon during early morning trading, Friday January 22, 2021, on the unofficial parallel market (black).
The price of the dollar against the Lebanese pound, during the beginning of Friday’s trading, at the unofficial parallel market (black) was about 8800 pounds for purchase, and 8750 pounds for sale, compared to 8880 pounds for purchase, and 8898 pounds for sale, at the end of Thursday’s trading.
And the rate of the green currency remained stable in the central bank at $ 1507.5, for commodities only.
Lebanese banks set the price of 3,850 pounds to the dollar, when withdrawing the dollar to small depositors a while ago, and it is still in force today.
The Syndicate of Money Changers in Lebanon confirmed the pricing of the dollar exchange rate against the Lebanese pound with a moving margin between the price of 3850 pounds for purchase and 3900 pounds for sale, as a maximum.
Among the pressures on the lira, Lebanon announced a complete closure to confront the Corona epidemic, after an unprecedented increase in the number of injuries and the inability of hospitals to receive more patients.
The head of the Lebanese Depositors Association, Hassan Mughniyeh, threatened to organize protests immediately after the end of the general lockdown imposed due to the outbreak of the Corona virus.
Banks sell their assets
The representative of the Federation of European Chambers in Beirut, Counselor Dr. Nabil Bou Ghantous, considered, in a statement, “the fact that two Lebanese banks started selling their branches and assets abroad, as a dangerous indication of the state of collapse that the banking sector has reached in Lebanon.”
He believed that the process of imposing the central bank, raising the banks’ capital by 20% before the first of March 2021, may strike small and medium banks in the interest of those larger and stronger.
He asked: “How would banks dare to increase their capital while fearful of nibbling at Lebanon or deducting part of this additional capital? What will the banks do with the money that they will collect as a result of selling some of their foreign assets? Excluding them from re-injecting or investing them in the Lebanese interior, and therefore they are It may not return even a fraction of the money from its depositors, which means that new fresh funds will not enter Lebanon, “according to lebanon24.com.
Transfer of deposits into shares
He added: “Some banks may try to persuade some of their big depositors to convert part of their deposits into shares in them, with the aim of raising their capital at the required percentage, i.e. 20%, by circumventing the central circular, so that the lifting is more paper-based than practical, with the possibility that Some banks resort to this process without the prior consent of the depositors, as their deposits were quarantined, unlawfully, under the pretext of implementing the financial engineering imposed by the Central Bank?
He wondered: How do these financial architectures come in the interest of certain banks at the expense of others, and how can banks be exempted from imposed fines while others are not exempted?
Loss of confidence
Bou Antous concluded: “The confidence factor in financial and banking policies has become completely lost, and this is a dangerous indicator of a dark future, especially since, as we indicated at the beginning, that the banks are forced to sell their foreign assets and branches, it is only evidence that they may be on the road to bankruptcy caused by the financial policies that they administered. Who can connect and solve the country, and what are the commissions that banks have lately imposed on their customers and on all operations, albeit in small proportions, except for additional evidence of their lack of liquidity, which they are trying to collect in one way or another. ”