Report: Central bank inclined to abolish 'lollar'

Lebanon’s Central Bank is inclined to abolish the so-called lollar, a term coined by Lebanese economist Dan Azzi in 2019 to refer to a ‘Lebanese dollar’, or a dollar that became trapped in Lebanon’s banking system in the wake of the 2019 crisis, media reports said.

“Circular 151, which sets the exchange rate of the (trapped) dollar at LBP 15,000, will be abolished, and accordingly the exchange rate will become LBP 89,000, as per the (black market rate and the) dollar exchange rate specified in the 2024 state budget,” al-Joumhouria newspaper said.

“This process will take place once this budget is approved and it will be inevitable to approve a capital control law with it,” the daily added.

Central Bank sources told al-Joumhouria that “should the 2024 budget not be approved soon, the Central Bank is mulling the possibility of resorting to a measure that would be similar to capital control through an internal circular, with the aim of reining in exchange operations and preventing the monetary base from going out of control.”