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The price of the dollar remained stable today against the Lebanese pound during transactions on the first day of the new year 2024, as the foreign exchange market awaits reforms to support the lira.
During the year to 2023, there was nothing new in the banking sector other than the exchange rate and the resignation of the Governor of the Central Bank of Lebanon, Riad Salameh, while the sector is awaiting the implementation of reforms since the beginning of the crisis and the adoption of the necessary laws. This may be normal given the stagnation that the country is experiencing on fundamental and sensitive issues, the most important point of which is the election of the President of the Republic.
“All the challenges faced by the banking sector occurred in the period between October 2019 and March 7, 2020, which began with depositors being asked to transfer their money in foreign currency outside Lebanon, which led to a terrible “This led to a liquidity problem for the banks,” said banking risk expert and economic researcher Mohamed Fahili. .
Fahili pointed out: “Despite this, the banking sector maintained an acceptable credit rating until the government of Hassan Diab announced it would stop servicing the national debt, which led to Lebanon being reclassified as a distressed country and the reclassification of Lebanese banks “The problems between resident Lebanon and external Lebanon regarding the financial sector, d Lebanese banks and banking services are becoming more expensive and the cost of financing foreign trade is doubling.”
According to Fahili, “all of these challenges still exist because nothing has changed in the monetary landscape and the Bank of Lebanon continues to provide liquidity to banks so that they in turn provide liquidity to depositors in accordance with the provisions of Circular 151, regardless of the Situation.” Exchange rate of bank withdrawals or according to the provisions of Circular 158, which includes accounts denominated in local dollars.” However, the Governor of the Bank of Lebanon distinguished them from the rest of the accounts due to the date of formation of these balances, before October 2019, in addition to liquidity in accordance with the provisions of Circular 150, which are fresh dollar accounts which the Bank may not count as part of its own liquidity.”
Fahili says: “This scene has remained the same since April 2020. On that day, the first copy of the Capital Control Bill was sent to the House of Representatives and to date it has not been approved, nor have the reform bills.” “Every budget since 2020 can be called a balanced budget in terms of revenue and expenditure,” and it has been noted that “since March 2020, the banking sector began to pay attention” to its operating costs, as it reduced the number of its branches, the number of its employees and the number of services it offers to its customers, as well as markets outside the Lebanon closed.”
Regarding the changes in the banking sector in 2023, Fahili pointed to “the adjustment of the official exchange rate from 1,500 lira to 15,000 lira, the slight improvement in citizens’ confidence in the banking sector and the tentative return to life in some banks,” meaning that There are many institutions that have made use of the provisions of the circular.” 165 I opened Fresh accounts in Lebanese and dollars and received payment cards, credit cards and checks from Fresh accounts, in addition to locating salaries and “All these matters are important , because we started 2023 with devastating expectations and were afraid of the impact of an adjustment in the official exchange rate.”
Fahili pointed out that “the former governor of the Bank of Lebanon was given very difficult tasks in the last years of crisis, the most important of which was the setting of the official exchange rate,” and considered this “one of the most important achievements of the incumbent Governor of the Bank of Lebanon, Wassim Mansouri, is that he gave up these powers and the best proof is the message he sent to politicians that they were asked to set the official exchange rate and that this rate would be approved at to ensure withdrawals in dollars for depositors.”
Fahili believed that “2023, especially the second half of the year, was good for good reasons as we witnessed stability in the dollar exchange rate, currency stability and a tentative return to the banking sector.” He expected “this scene will be like this. “Continuing in 2024, which will be a year of breakthroughs in the currency scene.”
Fahili was of the view that “nothing is required of the monetary authority other than to manage liquidity, mitigate inflationary pressures and prevent the return of turbulence in the foreign exchange market” and expects “a continuation of exchange rate stability as demand for the Dollar has declined significantly.” to the dollarization of its spending and income by the private sector.”
Fahili stressed “the need for the state to restructure and downsize the public sector, reduce its operating expenses and reduce waste in order to cover its expenses with its revenues, while working seriously to reach an agreement with the International Monetary Fund “I will resolve this matter if the situation in the Gaza Strip and southern Lebanon continues,” Fahili decided.
Fahili also expected “a self-restructuring of the banking sector that will have a positive and positive impact on depositors in general,” and he also expected the return of life to the banking sector in terms of loans, credit cards and payment cards and the reopening of bank accounts.
Finally, Fahili stressed that “we cannot achieve economic growth unless reforms are implemented” since “the economic growth we are experiencing today is due to consumption and not to very timid investments.”
The price of the dollar in Lebanon
The exchange rate of the dollar on the black market against the Lebanese pound today reached 89,000,000 pounds when buying and 90,000,000 pounds when selling.
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