Gas Stations, Money Changers Threaten Fresh Strikes

The syndicate of fuel distributors and owners of fuel stations and tankers on Friday decided to stage a strike on Monday “unless the ongoing contacts result in solutions that satisfy those who work in the sector,” in connection with the dollar rationing crisis in the country.

The syndicate of money changers for its part threatened that the entire sector might stage an open-ended strike or close shops permanently if the “unjust accusations” against it continue, stressing that its work is “legal.”

The central bank on Monday adopted a measure that would allow importers of petroleum products, wheat and medicine to obtain dollars at the official bank rate to pay for key imports. But stocks purchased prior to the measure and ambiguity surrounding the mechanism and responsibilities will likely prolong the crisis for some time.

Local media said last week banks and money exchange shops were rationing dollar sales in the country, where Lebanese pounds and U.S. dollars are used interchangeably in everyday transactions.

Lebanon has had a fixed exchange rate of around 1,500 Lebanese pounds to the dollar in place since 1997.

Central bank governor Riad Salameh last week denied that the country was facing a currency reserve crisis, as exchange rates on the parallel market reached 1,600 Lebanese pounds last week. It has also become difficult to withdraw dollars from ATMs for Lebanese lira account holders or to convert large sums in banks.

On Thursday, Salameh said that increased imports could have raised the demand for dollars in the country, noting this has pushed money changers to charge higher exchange rates.

In a televised speech, Salameh also raised doubts over whether increased imports were being used for local consumption, following reports of smuggling to neighboring Syria.