Lebanon's stable exchange rate amid regional currency challenges

Due to the internal events in Syria and the military developments in the region, the exchange rate of the Syrian pound against the dollar deteriorated to 14,000 Syrian pounds per dollar in the black market.

Additionally, the Israeli shekel has also weakened due to the Al-Aqsa Flood operation and the ongoing war in Israel, with the dollar now worth more than 4 shekels.

However, in Lebanon, despite internal political tensions and the ongoing conflict in the south, the dollar's exchange rate has remained stable at 89,000 Lebanese pounds. The reason for this stability lies in the swift measures taken by the acting governor of Banque du Liban, Wassim Mansouri.

On the morning of the Al-Aqsa Flood on Saturday, October 7th, there were those in Lebanon who were working to create a dollar flood. But quick actions taken by Acting Governor Saeed Mansouri prevented this.

Mansouri was on his way to board a flight from Paris to Marrakech to participate in meetings with the International Monetary Fund when he received calls warning him of an increasing demand for dollars.

This was particularly concerning as contractors, suppliers, and others with dollars in state funds requested payments in Lebanese pounds at the market rate.

They rushed to demand their payments in Lebanese pounds to be able to convert them into dollars.

But Mansouri immediately took the necessary actions to control the situation, and government authorities and the Ministry of Finance cooperated with him.

Simultaneously, the Ministry of Finance continued to convert fresh dollars into Lebanese pounds for those who wished to do so.

In this context, sources indicated that BDL, in coordination with the government and the Finance Ministry, managed to reduce the cash supply from around 62 trillion Lebanese pounds to 58 trillion Lebanese pounds between October 7th and October 17th.

This allowed for further restrictions on speculators, and the dollar's exchange rate against the Lebanese pound remained unaffected.

However, BDL sources emphasized that the Central Bank can continue its monetary stability policy at this time.

This doesn't imply that the economic situation is in the best condition. Expectations point to a decrease in economic activity by around 50%, especially in the tourism sector, which may negatively impact wages and benefits for workers in this sector and other private sectors.