Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Lebanese central bank seeks to strengthen currency after slump

Economic IndicatorsJan 14, 2022 12:38PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A man leaves a currency exchange shop in Beirut, Lebanon, January 5, 2022. REUTERS/Mohamed Azakir

BEIRUT (Reuters) -Lebanon's central bank said on Friday it aimed to boost the Lebanese pound's value by easing restrictions on dollar purchases after the currency hit a record low, fuelling fresh protests about rising prices and a collapsing economy.

The pound, which has lost more than 90% of its value since Lebanon's financial crisis erupted in 2019, dropped beyond 33,000 to the dollar, though it had clawed back some ground to around 27,200 by Friday.

Before the crisis, which has driven a significant proportion of residents into poverty, it traded at 1,500 to the dollar.

In response to the sharp decline, the central bank said it was removing a ceiling related to bank purchases of dollars using the official Sayrafa exchange rate platform.

"This initiative aims at curbing the volatility of the exchange market and aims at strengthening the pound's value against the dollar," bank Governor Riad Salameh told Reuters,

"...The operation consists of decreasing the amount of bank notes in Lebanese pounds."

Salameh also said there had been "signs of manipulation of the prices of the dollar to the pound," without giving details.

One analyst has described the central bank move as like taking "a Panadol pill to treat a major crisis", saying the government needed a programme of reforms to tackle deep economic problems.

Commercial banks have all but shut their doors to depositors amid a liquidity crunch caused by the economy crumbling under a mountain of state debt.

A new cabinet was formed in September, promising to start fixing the economy and restart talks with the International Monetary Fund, but ministers have not met for three months because of dispute over the conduct of an investigation into a huge explosion in Beirut port in 2020.

Salameh is facing multiple domestic and international investigations into his conduct at the head of the central bank, which he has led for three decades. He denies any wrongdoing.

Lebanese central bank seeks to strengthen currency after slump
 

Related Articles

Bitcoin falls again, last down 4%
Bitcoin falls again, last down 4% By Reuters - Jan 22, 2022 12

(Reuters) -Bitcoin dropped again on Saturday and was last down around 4% for the day, hovering around the $35,000 level. Bitcoin, the world's biggest and best-known...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email