What will BDL do to adjust the exchange rate again?

According to this new decision, payments would be split 50/50 between cash and checks, and as a result, amounts of liras in cash would automatically be withdrawn from the market. In this way, the state will have funds on hand, ready for disposal. 

Moreover, central bank sources claimed that since the decision to raise public sector wages, the amount of money in Lebanese pounds had increased significantly. 

However, the Finance Minister took this step a few days ago when it asked the Customs Administration to collect customs duties of 50 percent in cash and 50 percent in check.

But the implementation of this decision has been frozen for now, as importers and traders said it had negative repercussions:

First, transferring large amounts of cash is difficult and may threaten the security of the employees.

Second, this measure encourages the “cash economy,” in which money control is difficult, and money laundering operations are easier.

Third, and most importantly, it negatively affects citizens because if traders were unable to use their accounts and pay checks to the state, they would stop accepting that Lebanese pay for them with a bank card, given that the money will be blocked, and they will not be able to spend it.

Moreover, the Central Council of BDL held a meeting on Wednesday, during which there was no going back on this decision.

But discussions are underway over a mechanism for implementing it.

Therefore, meetings will continue until February 1st, when banks will begin to operate under the modified official exchange rate, which is LBP 15,000 instead of LBP 1,500.