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Exclusive LIMSLB: Central Bank Acquires Half a Billion Dollars Amid Maritime Border Deal

11:01 | 30 October 2022LIMS output
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Exclusive LIMSLB: Central Bank Acquires Half a Billion Dollars Amid Maritime Border Deal

LIMS news and opinion website released an exclusive article showing that the Central Bank of Lebanon managed to increase foreign exchange reserves by around half a billion dollars. The central bank expanded Lebanese pounds (LBP) in circulation by around 25% in one month to buy US dollars, taking advantage of the positive atmosphere that came with the maritime boarder deal. By the end of the month, the central bank announced that it would stop buying US dollars and would limit the use of its Sayrafa exchange platform to selling dollars. This prompted an appreciation of the LBP against the US dollar for the black-market exchange rate.

LIMS clarified that the central bank’s intervention is part of the managed float regime currently applied in Lebanon. This regime is responsible for the sharp fluctuations in the exchange rate driven by the central bank’s interventions. High exchange rate volatility is harmful to the real economy and only benefits those with inside information regarding the timing of the central bank’s intervention.

LIMS explained that adopting full dollarization would solve the currency instability in Lebanon, thus prompting growth and reducing poverty. Allowing private businesses to set their prices in US dollars would make it possible for them to pay their employees in US dollars as well. Thus, taxes could be paid in US dollars, allowing the government to pay public sector employees in hard currency. Having such a system would halt the devaluation stress, that has been haunting most residents with incomes denominated in LBP. Income earners, who get their pay in the local currency, keep losing purchasing power due to the LBP devaluation.

LIMS Media Interviews: 

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  • Why Did The Dollar Drop? October 25, 2022: Naqdpolitics, TV Interview AR 
  • Hard Cash Pricing Solved With Many Positive Dollar Fluctuations Complement Where Inflation Ended By Deducting Income And Wages, October 27, 2022: Nidaa Alwatan, Article AR 
  • Dollar Will Not Decline After October 31st, October 30, 2022: Lebanon Debate, Article AR 
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  • Dear Lebanese, Keep Your Gold, October 22, 2022: OTV, TV Interview AR  
  • Banque Du Liban Approves Selling Dollars Through “Exchange” Platform, October 24, 2022: SBI, TV Interview AR  
  • Reasons For Sudden Dollar Decline After Central Bank Decision, October 25, 2022: Aljadeed, TV Interview AR 
  • Dollar Will Reach “Shocking” Number. And Warning Of “Heart Attacks”! October 25, 2022: Spotshot, TV Interview AR 
  • Why Not Solicit Contributions From Abroad? October 9, 2022: Boursa Info, Article AR 
  • Hyperinflation In Lebanon…Here’s The Remedy! October 10, 2022: Al Hadath Online, Article AR 
  • What If We Dollarized Everything? October 11, 2022: Ici Beyrouth, Article FR 
  • Despite Completion Of Demarcation, Lebanese Pound Continues To Fall! October 18, 2022: Sky News Arabia, Article AR 
  • Exclusive On LIMS Website—First Demarcation Results: 418 Million Fresh Dollars Enter BDL, October 20, 2022: LIMS, Article AR