Here is why BDL buys USD from the market

BDL buys USD from the market to deal with:

First, the Sayrafa exchange platform, which had a trading volume of 11 billion and 800 million dollars last year, and there is no number available that determines how much money the BDL used on this platform.

Second, Circular 158, which allows cash withdrawal of $400, and Circular 161, which specifically addresses the public sector. However, the wages and benefits received by employees of the latter are paid in Lebanese lira at the rate of LBP 43,600. Additionally, it is impossible to specify a fixed number for them in USD due to their increases in LBP. However, their size is currently about $80 million.

Third, the continuous subsidy of wheat $8 million per month, but funding for wheat is now under a loan from the World Bank and for some medicines at a value of $35 million per month.

Fourth, the electricity sector, where $300 million is currently needed. But some sources said BDL had bought it when the USD was traded at a rate of LBP 35,000. Furthermore, Electricité du Liban must get liras for BDL to sell dollars at the Sayrafa exchange rate plus 20 percent.

However, several sources indicated that every BDL movement does not result in a rise in the dollar exchange rate the way it now is. Instead, there are large speculative operations that may have political goals.

Moreover, political paralysis is a significant factor in currency deterioration, as there is a presidential vacuum, a caretaker cabinet, a parliament that does not work regularly, a strike in the public sector, and judiciary paralysis.