Report: Salameh Follows Up on Exchange Market Control Measures

Central bank governor Riad Salameh held a meeting to tackle the procedures accompanying the arrest of some exchange house owners over violation reports, and the ways to control the money market as the country grapples with an unprecedented economic and monetary crisis, al-Joumhouria daily reported on Wednesday.

Salameh held his meeting on Monday with President of the Banking Control Commission Samir Hammoud, Financial Prosecutor Ali Ibrahim, and head of exchange houses in Lebanon Mohammed Mrad, said the daily.

Discussions focused on the procedures that will accompany Ibrahim's decisions, who on Tuesday had six owners of exchange houses arrested for investigation over violations. The meeting also discussed ways to control the monetary market, according to the daily.

Since October, the Lebanese pound, long pegged to the dollar, has lost up to 60% of its value in the parallel exchange market against the dollar and banks have imposed unprecedented capital controls to preserve liquidity.

Money changers in protests-hit Lebanon agreed last week to cap the dollar exchange rate at 2,000 pounds as part of efforts to curb the local currency's devaluation on the parallel market, which some failed to abide.

The Lebanese pound is officially pegged to the greenback at a rate of 1,500 to the dollar but the country's sharp economic downturn has sent the currency into a tailspin in foreign exchange offices.

Money changers have in recent weeks been trading dollars at more than 2,600 pounds.

The Lebanese Money Changers Association said it had agreed with the central bank on "an exchange rate for the US dollar capped at 2,000 Lebanese pounds,” which was not respected by all.