The Central Bank of Lebanon refuses to adjust the exchange rate for cash withdrawals

The Central Bank of Lebanon said Wednesday that it refuses to adjust the exchange rate for cash withdrawals in pounds from depositor accounts in dollars in absence of a comprehensive plan for the economy going through a severe financial crisis.

And since the country collapsed in a major financial crisis in 2019 has evaporated Strong currency in Lebanon and those who have accounts in US dollars were not in able to do so Except for withdrawals in Lebanese pounds, according to an exchange rate of 3900 pounds per dollar.

This means an actual reduction of around 80% in the value of their savings, with the dollar trading at around £ 17,000 on the parallel market on Wednesday. The MPs had asked for an increase in the rate applicable to cash withdrawals.

But the central bank said in a statement Wednesday that any exchange rate adjustment “will have significant repercussions on the money supply and the dollar exchange rate. in absence of a complete economic and financial plan, which we hope will be developed soon. as much as possible”.

The central bank said it is extending the current rules that set the exchange rate used for cash withdrawals from accounts in hard currency as of January 31, 2022, to “give the government time to present its reform plan,” the bank said.

Prime Minister Najib Mikati, who took office this month, pledged to revive talks with the International Monetary Fund and implement reforms to address the crisis.

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