The Central Bank of Lebanon announces the transition to a new exchange rate starting from February

Lebanon’s Central Bank Governor Riad Salameh said the bank will adopt an exchange rate of £15,000 to the dollar starting February 1 as part of the process of unifying the country’s multiple exchange rate system. .

Salameh said in a statement: “We have entered the stage of unifying exchange rates, and this has begun with the customs dollar, which is decided by the Ministry of Finance, along with other fees and taxes.”

Regarding real exchange rates, starting in February, he explained: “We will have two rates: 15,000 and the exchange rate. Unification of the exchange rate cannot be achieved in one fell swoop, so this will be the first step until the exchange becomes one that determines the price.” And whether this measure will lead to an increase or decrease in the exchange rate, he said: “Then the market determines supply and demand, but the Bank of Lebanon will be on the alert.”

He said: “In light of the latest Bank of Lebanon statistics, it has been found that the Lebanese economy will grow by around 2 percent in 2022. The movement of imports has increased and we have witnessed the latest economic movement. summer. The problem is in the public sector, which creates a burden on the economy.”

Notably, the official exchange rate currently applied by the Central Bank is £1,500 to the dollar, a rate that has become completely non-existent since the 2019 domestic financial collapse that saw the currency lose more than 95% of its currency. value.

The exchange rate on the parallel market is around £39,000 to the dollar.

Source: “An-Nahar”