SAWT BEIRUT INTERNATIONAL

| 24 September 2022, Saturday |

Black market dollar declines

The black market dollar continues to record a significant decline, recording a new level.

This morning, it recorded between 28,150 Lebanese pounds for purchase and 28,100 pounds for sale.

Yesterday, the Banque du Liban renewed Circular No. 158, according to Intermediate Circular No. 626 directed to banks, a decision that was taken under the pretext (exceptional measures for the gradual payment of deposits in foreign currencies).

Under the renewal of Circular 158, the Central Bank amended some clauses, so that the depositor can use the 400 dollars that he is entitled to use only in the card at an exchange rate of 12,000 pounds, in which he can pay some taxes, fees, and bills, such as electricity.

Last March, Lebanon announced that it was unable to pay its outstanding debts on time, and suspended the payment of $ 1.2 billion due on the ninth of March, which put the debt-ridden country on the path of defaulting on sovereign debt, at a time when it is facing a major financial crisis.

The Lebanese local currency has lost more than 95 percent of its value since the economic downturn began in 2019, and banks are no longer allowing foreign currency depositors to access their savings.

And the credit rating agency Fitch said that the road remains difficult for Lebanon to get out of the default situation on its sovereign obligations.

The outgoing Lebanese Cabinet approved a roadmap for financial recovery during its last session before moving to the status of a caretaker.

The plan includes canceling a “significant part” of the Central Bank of Lebanon’s foreign currency obligations towards commercial banks and dissolving banks that are not eligible to continue by November.

But the Association of Banks in Lebanon objected to the road map a few days ago, saying that it puts the full losses of the economic collapse in the country on the shoulders of depositors.

 

    Source:
  • Sawt Beirut International