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Acting BDL Governor says returning depositors' funds is feasible, stresses no state financing in LBP or USD
Lebanon Economy
2023-09-04 | 06:55
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Acting BDL Governor says returning depositors' funds is feasible, stresses no state financing in LBP or USD
Acting Banque du Liban (BDL) Governor Wassim Mansouri said in an interview with Al Arabiya that returning funds to depositors is not impossible, emphasizing that depositors should not wait for an extended period.
Mansouri added that the Lebanese economy has declined from approximately 55 billion dollars to around 20 billion, pointing out that the crisis can only be resolved through extensive collaboration among technical, legal, and political entities.
He also mentioned that the Central Bank plans to provide a new platform for foreign currency trading through Bloomberg.
Mansouri affirmed through the interview that the biggest threat to the [Lebanese] state is the continuation of the "cash economy," pointing out that the exchange rate is determined by law and will be changed in the next state budget, saying that it will be reduced.
The Acting Governor of the Central Bank of Lebanon also told Al Arabiya that banks' evaluation will determine their ability to continue, adding: "Our decision is final not to finance the state in either Lebanese lira or US dollars."
He stated that the decision lies with the central bank regarding the provision of US dollars, saying that it is up to the state to create a balanced budget without a deficit.
He affirmed that the state must find ways to finance its budget deficit.
The acting Governor of the Central Bank of Lebanon also revealed via Al Arabiya that Saudi Arabia helped Lebanon, adding: "We must help ourselves."
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