Currency stability amid regional tension: Dollar holds at LBP 89,000, Israeli Shekel declines

Stability continues in the exchange rate of the US dollar at LBP 89,000 per one dollar, despite the tension in the region and Lebanon, precisely due to the ongoing military operations since the outbreak of the Al-Aqsa Flood operation on October 7. 

Meanwhile, the Israeli Shekel recorded a decline, reaching 4.6 shekels per dollar, and the Syrian pound which reached 16,000 pounds per dollar on the black market.

The reason for this can be attributed to the measures taken by Acting Banque du Liban (BDL) Governor Wassim Mansouri, in cooperation with the government and the Ministry of Finance, especially with regards to not injecting more pounds into the market, allowing speculation on the Lebanese lira. 

It is worth noting that contractors and suppliers had hurried to request their dues in Lebanese lira from state institutions and banks when the war broke out to exchange them for dollars. However, the Acting Governor made contacts that prevented the payment of these amounts.

Sources revealed that Mansouri has also taken measures that reduced the cash mass, meaning the volume of Lebanese lira in circulation between citizens, institutions, and banks, from around 62 trillion Lebanese lira to 58 trillion Lebanese lira, thereby imposing further restrictions on speculators. The exchange rate of the US dollar against the Lebanese lira remained unaffected.

Central bank sources emphasized that the Central Bank is capable of continuing its monetary stability policy at the moment. However, this does not mean the economic situation is at its best. 

Expectations indicate a decline in economic activity by approximately 50 percent, especially in the tourism sector, and this could harm the salaries and benefits received by workers in this sector and other private sectors.