Salary strategy: Public sector employees to receive August salaries in dollars

Lebanon's public sector employees are set to receive their salaries for August in US dollars through the Sayrafa platform.

However, where will the funds for these salaries come from?

Wassim Mansouri, the acting Banque du Liban (BDL) Governor, clarified that the BDL will only tap into its reserves if legislation from the parliament supports such a move. Instead, the funds for the salaries will come from the dollar market.

The BDL will purchase dollars from the parallel market to secure the salaries based on an agreement between the Finance Ministry and the BDL. This approach ensures a steady supply of dollars for wages without impacting the exchange rate stability.

BDL sources revealed to LBCI that the process of withdrawing dollars occurred in several stages, parallel to the funds the Finance Ministry withdrew from the market through tax collections in cash from merchants. The presence of tourists with foreign currency helped facilitate monetary stability.

In terms of numbers, salaries will be secured, amounting to $80 million for August. Public sector employees have been waiting for their wages, but questions remain regarding the salary situation for September.

According to sources, this temporary measure was taken due to the belief that it's not sustainable. Securing dollars for salaries is expected to become more challenging, especially if the government fails to implement the necessary reforms to attract foreign currency into the country.