New trading platform: Lebanon introduces Bloomberg platform to regulate dollar transactions

Importers have long sourced their dollars from the market in Lebanon. 

However, with the launch of the Bloomberg trading platform for foreign currencies, specifically the US dollar and the Lebanese lira, through banks, the purchase of dollars for imports will gradually be restricted to this new platform.

According to Banque du Liban (BDL) sources, banks will find it more reassuring to handle funds that enter their systems through Bloomberg. They will likely avoid dealing with funds not coming through this platform.

According to these sources, working on the Bloomberg platform will also expose some speculators in the Lebanese lira's exchange rate. For instance, if someone wants to buy dollars, they must display the desired buying rate compared to the market rate. 

The Bloomberg platform will display the three lowest rates for buying dollars, while the highest rate will not be visible to all but those who manage the platform. This measure could potentially allow monetary and judicial authorities to investigate why someone is offering to buy dollars at an unusually high rate.

Moreover, BDL sources emphasized that the effort to reduce the cash economy did not begin with the introduction of the Bloomberg platform. They clarified that it is not solely due to American requests in this regard but because BDL recognizes the risks posed by a cash-based economy to the country's overall economy and the Lebanese currency. 

Demand for reducing and regulating this cash economy is a global requirement, with requests coming not only from the United States but also from European, Arab, and Asian nations.