Jumblat Warns Using Obligatory Reserves Would Bring Total Collapse

Progressive Socialist Party leader Walid Jumblat on Wednesday warned against spending from the central bank’s obligatory foreign exchange reserves.

“Away from political disagreement, I once again call on (caretaker) PM (Hassan) Diab to take essential decisions towards rationalizing expenditure, supporting citizens directly with the help of the World Bank and halting the subsidization of traders, because using the obligatory reserves would be a prelude to an all-out collapse,” Jumblat tweeted.

“Stop the ministerial, electoral, regional and international bets that subject Lebanon to the threat of obliteration,” the PSP leader warned.

An official source had earlier told Reuters that the central bank is studying lowering the threshold for obligatory foreign exchange reserves in order to continue subsidizing key imports next year.