SAWT BEIRUT INTERNATIONAL

| 9 December 2022, Friday |

Directions to extend Circular 161 for an additional month

The Central Bank’s decision to extend Circular 161 until the end of February, contributed to reducing the exchange rate on the black market. However, the question remains, can the Central Bank continue with this measure for a long time? Will the exchange rate witness new fluctuations?

There is no doubt that the measures taken by the Central Bank, including Circular 161, are all temporary, but of course prevented further deterioration of the exchange rate of the lira against the dollar, and reduced the margin between the exchange rate on the black market and Sayrafa platform.

These Circulars and procedures have made Lebanese citizens cautiously anticipate the stability in the dollar exchange rate. It seems that there is a tendency to extend the work of circular 161 for an additional month, although there are no final data so far, knowing that the Central Bank announced in a statement that extending the circular for an addition period is subject to renewal.

The circular was attached to an implicit decision to allow depositors who have accounts in Lebanese pounds to benefit from it by converting their fresh pounds, not the pounds of deposited accounts into dollars, according to the Sayrafa platform exchange rate.

The question remains at the moment when the Central Bank is unable to buy large amounts of money, will the dollar exchange rate rise to high records again, as a result of the high demand for the dollar?

Today, fuel prices recorded an increase in the price of gasoline, and a decrease in diesel and gas. According to the schedule, the price of a 95-octane canister of gasoline rose by an average of 4,800 LBP, and 98-octane canister rose by an average of 3,800 LBP, while a canister of diesel decreased by 2,000 LBP, and a gas bottle fell by 4,300 LBP.

Informed sources revealed to Sawt Beirut International that what is happening at the price level is normal, because it is a reflection of what is happening at the global level. However, there is fear that the repercussions will extend to higher levels and aaffect the Lebanese market, which is in a state of anxiety. In addition, the severity of tensions between Russia and Ukraine indicates a negative change in the world with regard to oil. It is expected that the supply will decrease and the prices will rise further.

    Source:
  • Sawt Beirut International