SAWT BEIRUT INTERNATIONAL

| 26 February 2024, Monday |

What are the reasons behind the rise in dollar exchange rate?

The dollar exchange rate on black-market has rose again reaching 23,000 LBP, after maintaining its stability for more than a month at the rate 20,000 LBP, thanks to circular 161 issued by Central Bank.

Economic Expert, Jassem Ajaka told Sawt Beirut International that the reason behind this sudden and rapid rise, is due to the increasing demand for the dollar on the black market apart from Sayrafa’s platform. Demand is coming from traders who are in dire need for dollars to import goods and foodstuffs, amid the high prices of commodities globally. He also considered that there are certain political calculations behind the increase in demand for the dollar in order to prove that the Central Bank’s measures are unfavorable.

Ajaka considered that the demand for the dollar will increase, as long as the Ukrainian crisis continues and the prices of oil and other commodities are rising. He stressed that Sayrafa platform will not stop even if it suspended for a short time this morning to take into account the new prices.

Ajaka also confirmed that Circular 161 will be renewed due to the catastrophic repercussions that may result from stopping it, as the exchange rate on the black market will rise in a crazy manner. He stressed that prices are not supposed to rise in the presence of Sayrafa platform, as the volume of trading on it in the recent period amounted to $90 million, which is the size of the entire market.

Ajaka considered that food security is in danger due to the Russian-Ukrainian war, especially that no alternative markets have been secured so far. He said that the political confusion we are experiencing, especially since we are on the eve of elections, is the main reason for all the crises we are experiencing.

 

    Source:
  • Sawt Beirut International