Lira recovers after Salameh says BDL to sell dollars at 38,000
The black market dollar exchange rate witnessed a dramatic drop around noon Tuesday after Central Bank Governor Riad Salameh announced that banks will start selling dollars to the public at a Sayrafa platform rate of LBP 38,000.
“Throughout the three-day holidays period, the U.S. dollar exchange rate surged by LBP 2,000 on the parallel market due to speculation operations and the smuggling of dollars to abroad. This hike caused inflation on the markets, which harmed the Lebanese citizen seeing as prices in Lebanon are linked to the dollar exchange rate,” Salameh said in a statement.
“Accordingly, and based on articles 75 and 83 of the Code of Money and Credit, it has been decided firstly to hike the Sayrafa exchange rate to LBP 38,000, and secondly for the central bank to buy all Lebanese liras and sell the dollar at the LBP 38,000 Sayrafa rate,” the governor added.
He also said that “individuals and institutions, and without sum limits, can apply to all Lebanese banks to carry out these operations until further announcement.”
Salameh’s statement swiftly led to a collapse in the dollar exchange rate on the black market. However, the unofficial rate re-bounced to LBP 45,000 at around 1pm Tuesday after having reached LBP 42,000 earlier in the day.
The black market rate had reached the LBP 48,000 mark on Monday.
Source: Naharnet
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