SAWT BEIRUT INTERNATIONAL

| 30 January 2023, Monday |

Selling black dollar at 38,000 LBP… will it last?

With the beginning of December, many bet on visiting expatriates and tourists coming for the Christmas and New Year holidays. However, we can say that it is “useless”, as the dollar continued to approach the ceiling of fifty thousand Lebanese pounds.

But what happened was not taken into account, as the Central Bank of Lebanon’s decision to announce the sale of the dollar on a banking platform at a price of 38,000 pounds surprised all those wishing to buy the dollar, without specifying the ceiling, which led to a scramble for dollar holders to get rid of it, in anticipation of a collapse in its price, and this coincided with a prohibition on companies working for the central account to stop buying dollars, and the result was a decrease in its price, but with the expectation by dollar holders, that it would rise again.

What does the decision of the new central bank mean?
What are its implications?
Can this decision last?

In the end, we can say that the Banque du Liban’s decision to raise the price of the dollar on the “exchange” platform from 32 to 38 thousand pounds is a lightning strike to those betting on the continued rise of the dollar towards fifty thousand pounds before the end of the year.

But the most important question is whether this decision will lead to a decrease in the exchange rate of the dollar on the black market to the range of 38 and 39 thousand pounds, which is very close to the price of an exchange platform as long as there will be no need for anyone to buy dollars from the market?

 

    Source:
  • Sawt Beirut International