Lira Recovers after BDL Intervenes to Halt Freefall

The dollar exchange rate on Lebanon’s black market witnessed a major drop on Wednesday morning, hours after the central bank announced in a statement that it would take a host of measures aimed at halting the Lebanese lira’s freefall.

The exchange rate had hit a record high of LBP 29,000 on Tuesday evening before dropping to around LBP 26,450 on Wednesday.

The central bank had announced overnight that a meeting was held between Prime Minister Najib Miqati, Finance Minister Youssef al-Khalil and Central Bank Governor Riad Salameh, in which the conferees discussed means to curb the collapse of the lira exchange rate.

The central bank accordingly decided to take measures that include “supplying the operating banks with its cash share for the rest of this month in USD instead of Lebanese lira based on the Sayrafa platform exchange rate.”

The bank added that its measures would contribute to “lowering market demand for dollars and increasing demand for the Lebanese pound.”