Exchange rate roulette: Public sector employees anxiously await payment rates

Public sector employees in Lebanon, both civilian and military, are anxiously waiting to see at what Sayrafa exchange rate they will be paid: An exchange rate of LBP 45,000 or LBP 90,000. 

The last payment was made at a rate of 45,000 Lebanese liras to the US dollar, but there has been no official announcement from the government or Banque du Liban (BDL) about the new rate.

However, BDL is scheduled to hold a meeting on Wednesday to discuss the issue in light of serious talk about the possibility of receiving salaries at the daily Sayrafa exchange rate, which is currently equivalent to LBP 90,000.

But, if payments were made at the current rate of Sayrafa, public sector employees would lose almost half of their salary. For instance, an employee receiving a salary of 9 million Lebanese pounds would receive $200 based on the LBP 45,000 rate but $100 if paid at the LBP 90,000 rate.

Moreover, some sources explained that paying salaries at the LBP 45,000 rate would cost $80 million in dollars, which is not currently available in the Central Bank and would need to be sourced from the black market, causing the exchange rate to skyrocket. But if salaries are paid at the LBP 90,000 rate, the cost would be reduced to $40 million, making it more feasible.

Furthermore, there have been discussions about paying part of the employee’s salary at Sayrafa exchange rate in dollars and the rest in Lebanese pounds with an increase.

Public sector employees have yet to be informed of any change in payment rates, and some have started to prepare for potential backlash if a formula that protects the value of public sector salaries is not adopted.

The uncertainty of the economic situation and the lack of clear communication from the government and BDL have left many public sector employees anxious about their future salaries.