BDL could control cash mass for one billion Dollars, but not without political solution

The sources confirmed that the Central Bank of Lebanon is trying, within its capabilities, not to remain a spectator in order to preserve what remains of the Lebanese pound. Central bank sources refused to compare the financial situation in Lebanon to that of Venezuela. They stated that the size of the cash mass in Lebanese pounds is 80 trillion, and the central bank can take full control of it for just one billion dollars, returning the dollar to its lowest levels.

However, this process entails significant risks because repeating it would result in the central bank losing all of its reserves in the absence of a political solution.

The sources confirmed that the Central Bank of Lebanon continues to intervene through the Sayrafa platform as a seller of dollars at the platform price and a buyer from the parallel market without using reserves and without incurring losses, given that it had purchased dollars from the market at a rate of 35 and 45 thousand pounds per dollar, for example, and is now selling them at a rate of 70 thousand pounds per dollar.

Central bank sources confirmed that all of these operations are ongoing with government and legal coverage, specifically Article 75 of the Monetary and Credit Law, which allows the central bank to purchase dollars from the public in agreement with the Minister of Finance.