News
Latest News
news bulletin
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Other News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Beirut
28
o
Bekaa
22
o
Keserwan
27
o
Metn
27
o
Mount Lebanon
24
o
North
27
o
South
23
o
Live
Video
Audio
Schedule
shows
العربية
watching now
Arous Beirut
SUBSCRIBE
Home
Notification
Live
Video
Audio
shows
Beirut
28
o
Bekaa
22
o
Keserwan
27
o
Metn
27
o
Mount Lebanon
24
o
North
27
o
South
23
o
News
Programs
The News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Programs
Series
Movies
Documentaries
Variety
Comedy
Talk Show
News Bulletin
Sports
Breaking News
Latest News
Highlighted News
Most Read
Videos
العربية
Watch the latest programs and the latest developments on your favorite screen
Shows
Join millions of followers
Who We Are
Contact Us
Advertise With Us
Careers
Channel frequencies
Privacy Policy
Terms and Conditions
Central Bank introduces steps to provide dollars for key imports
Author:
Maroun Nassif
Breaking Headlines
01-10-2019 | 13:22
High views
Share
Share
Central Bank introduces steps to provide dollars for key imports
Watch now
More details about online video viewing packages
4
min
Central Bank introduces steps to provide dollars for key imports
Lebanon's central bank introduced new steps on Tuesday to provide commercial banks with U.S. dollars to support imports of fuel, wheat and medicine, after some importers complained they had been unable to meet their needs at the pegged exchange rate.
The move led the Lebanese pound to strengthen against the U.S. dollar on a black market that has emerged of late, three sources familiar with the market said. Lebanon's dollar-denominated government bonds also climbed.
But Moody's credit rating agency put Lebanon's Caa1 rating under review for downgrade, saying anticipated external financial assistance had not yet been forthcoming.
It said the government's greater reliance on central bank foreign currency reserves to meet upcoming foreign currency bond maturities risked "destabilizing the (central bank's) ability to sustain the currency peg".
Lebanon has a $1.5 billion Eurobond maturity in November.
Saddled with one of the world's heaviest public debt burdens at 150% of annual gross domestic product, the government has declared an economic emergency to try to get its finances under control.
Gas stations closed last month in a one-day strike because their operators said they could not secure dollars at the official exchange rate and were being forced to pay more in the parallel market. Millers complained of the same problem.
The central bank said in a communique that commercial lenders must ensure the credit lines were used exclusively for imports of fuel, wheat and medicine. Special accounts must be opened with the central bank for each purchase and it would get copies of all documents related to each transaction.
PARALLEL MARKET
The move led the Lebanese pound to strengthen against the U.S. dollar on the parallel market, where the local currency has recently weakened below the official pegged rate, said Marwan Mikhael, head of research at Blominvest Bank.
The parallel market rates on Tuesday were 1,540 and 1,550 pounds to the dollar, Mikhael said. A second source gave a rate of 1,555. On Monday, two sources put the rate at 1,570. Last week it changed hands at 1,600 pounds or higher.
The official exchange rate is 1,507.5 to the dollar.
The emergence of the parallel market for U.S. dollars has reflected wider economic problems afflicting Lebanon, which has suffered years of low economic growth and a slowdown in capital inflows from abroad.
Moody's said its rating review may extend beyond the usual 90 days and would allow the agency to "take stock of the government's progress in adopting the 2020 budget as planned before the end of the year".
It would also allow it to take stock of the extent to which that "unlocks confidence-enhancing external support packages" via CEDRE - a reference to billions of dollars of international finance pledged to Lebanon last year, conditional on reforms.
Moody's said the review would also assess whether Lebanon could secure financial support from Gulf Arab states "which in turn would ease immediate liquidity risks and be conducive to a broader growth recovery over the longer term".
Reflecting the increased pressure on Lebanon's finances, Fitch ratings agency recently downgraded it deep into junk territory.
Rival ratings agency S&P Global kept Lebanon's credit rating at B-/B but warned that it could be lowered, saying it considered its foreign exchange reserves sufficient to service government debt in the "near term".
REUTERS
To watch the full report, please click on the video above.
Breaking Headlines
Central Bank
Dollar
Lebanon
Economy
Subscribe to our VOD
SUBSCRIBE
Our visitors readings
d-none hideMe
0
News Bulletin Reports
12:48
Trump pushes 60-day Gaza ceasefire as Netanyahu faces coalition revolt: The details
News Bulletin Reports
12:48
Trump pushes 60-day Gaza ceasefire as Netanyahu faces coalition revolt: The details
0
World News
2025-05-19
Israel should be excluded from Eurovision: Spain PM
World News
2025-05-19
Israel should be excluded from Eurovision: Spain PM
0
World News
2025-04-02
Military confrontation 'almost inevitable' if Iran nuclear talks fail: French FM
World News
2025-04-02
Military confrontation 'almost inevitable' if Iran nuclear talks fail: French FM
0
Middle East News
2025-06-03
US to scale down its military bases in Syria, envoy says
Middle East News
2025-06-03
US to scale down its military bases in Syria, envoy says
Videos
d-none hideMe
0
Lebanon News
2025-07-01
Massive fire erupts at unregulated dumpsite in Bchannine, Zgharta district
Lebanon News
2025-07-01
Massive fire erupts at unregulated dumpsite in Bchannine, Zgharta district
0
Lebanon News
2025-06-10
Clash between Lebanese Army and residents of Deir Qanoun Al Nahr results in injuries (Video)
Lebanon News
2025-06-10
Clash between Lebanese Army and residents of Deir Qanoun Al Nahr results in injuries (Video)
0
Lebanon News
2025-06-04
Mexico dedicates garden around Lebanese Emigrant Statue in Beirut to mark 80 years of diplomatic ties
Lebanon News
2025-06-04
Mexico dedicates garden around Lebanese Emigrant Statue in Beirut to mark 80 years of diplomatic ties
0
Lebanon News
2025-05-19
President Aoun to seek Egyptian support for Lebanese Army in detecting explosives and tunnels
Lebanon News
2025-05-19
President Aoun to seek Egyptian support for Lebanese Army in detecting explosives and tunnels
0
Lebanon News
2025-05-15
LBCI Exclusive: US steps up pressure on Hezbollah, Morgan Ortagus details sanctions and vision for Lebanon's future
Lebanon News
2025-05-15
LBCI Exclusive: US steps up pressure on Hezbollah, Morgan Ortagus details sanctions and vision for Lebanon's future
0
Lebanon News
2025-05-11
Kuwait rolls out official welcome for Lebanon's President Aoun – video
Lebanon News
2025-05-11
Kuwait rolls out official welcome for Lebanon's President Aoun – video
0
Lebanon News
2025-05-11
Security incidents temporarily disrupt voting in several Akkar and Minieh-Danniyeh centers
Lebanon News
2025-05-11
Security incidents temporarily disrupt voting in several Akkar and Minieh-Danniyeh centers
0
News Bulletin Reports
2025-05-09
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
News Bulletin Reports
2025-05-09
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
0
Lebanon News
2025-04-23
US envoy Morgan Ortagus hails Lebanese diaspora, says country stands at a crossroads
Lebanon News
2025-04-23
US envoy Morgan Ortagus hails Lebanese diaspora, says country stands at a crossroads
Most read
d-none hideMe
24 hours
7 days
Month
1
Lebanon News
02:37
Casino du Liban director Roland Khoury detained in BetArabia investigation: Sources to LBCI
Lebanon News
02:37
Casino du Liban director Roland Khoury detained in BetArabia investigation: Sources to LBCI
2
Lebanon News
10:20
Lebanon’s banking association welcomes central bank decision enforcing equal treatment of depositors
Lebanon News
10:20
Lebanon’s banking association welcomes central bank decision enforcing equal treatment of depositors
3
Middle East News
04:18
Avichay Adraee: Special operation in southern Syria targets Iran-linked cell, weapons seized
Middle East News
04:18
Avichay Adraee: Special operation in southern Syria targets Iran-linked cell, weapons seized
4
News Bulletin Reports
13:12
New normalization push could reshape the Middle East—with Syria and Lebanon on the radar
News Bulletin Reports
13:12
New normalization push could reshape the Middle East—with Syria and Lebanon on the radar
5
Lebanon News
06:42
MEA adjusts flight schedule for July 5–6-7 due to operational reasons
Lebanon News
06:42
MEA adjusts flight schedule for July 5–6-7 due to operational reasons
6
Lebanon News
05:07
PM Salam outlines reform and recovery vision: Border security, IMF deal, and $250M reconstruction loan
Lebanon News
05:07
PM Salam outlines reform and recovery vision: Border security, IMF deal, and $250M reconstruction loan
7
News Bulletin Reports
13:03
Six years on, Lebanon’s banking crisis deepens without legislative solution
News Bulletin Reports
13:03
Six years on, Lebanon’s banking crisis deepens without legislative solution
8
News Bulletin Reports
13:10
Two million vehicles uninspected — what’s blocking Lebanon’s inspection system?
News Bulletin Reports
13:10
Two million vehicles uninspected — what’s blocking Lebanon’s inspection system?
Download now the LBCI mobile app
To see the latest news, the latest daily programs in Lebanon and the world
Google Play
App Store
We use
cookies
We use
cookies
to make
your experience on this
website better.
Accept
Learn More