Salameh Vows to Preserve Exchange Rate Stability
Central Bank Governor Riad Salameh on Thursday pledged anew to preserve the stability of the Lebanese lira exchange rate, amid an unprecedented dollar shortage crisis in the Lebanese markets.
“We remind everyone that the lira is the country’s currency and we will continue to secure its exchange rate stability,” Salameh vowed.
“We are entrusted with the lira exchange rate, and today we have found out that the discrepancy that is being talked about regarding the dollar and the lira has always existed. At certain times, the price of the dollar at money changers was lower or higher than the one at the banks, and since June, the money changers’ demand for dollar bills increased, which resulted in a hike in the exchange rate,” the governor added.
“We have agreed that banks would allow dollar withdrawal when the client’s account is in U.S. dollar and lira withdrawal when the client’s account is in lira. As for conversion, or dollar withdrawal when an account is in Lebanese lira, we have given banks the freedom to accept or reject that,” Salameh explained.
Earlier this week, the central bank announced that it would facilitate access to dollars for importers of petroleum products, wheat and medicine.
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.
Petrol station owners threatened to strike over a lack of dollars at a fixed exchange rate to pay for imports, while flour producers complained they had to resort to much higher rates from money changers.
Lebanon has had a fixed exchange rate of around 1,500 Lebanese pounds to the dollar in place since 1997.
Source: Naharnet
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