|
The
currency crisis poses the biggest threat to the stability of
import-reliant Lebanon since the 1975-90 civil war.
Food importers were being quoted a price of 7,500 to buy dollars
on Friday, said Hani Bohsali, president of the Syndicate of
Importers of Foodstuffs, Consumer Products and Drinks. A second
market participant cited exchange rates of 7,300/7,600.
That compares to rates of 3,850/3,900 at licensed foreign
currency dealers and the official peg of 1,507.5, which the
central bank is still applying for imports of wheat, medicine
and fuel.
The central bank said "liquidity was secured" at the 3,850/3,900
rates in a statement announcing the activation on Friday of a
new electronic trading platform at licensed currency dealers.
Black market volumes were "tiny", it said.
But Bohsali said food importers have only been able to secure
20% of their foreign currency needs at the licensed dealers in
the last two weeks, leaving them dependent on the parallel
market for the rest.
"Food imports are being reduced. It cannot continue this way. If
you can't find dollars to import, you don't have any guarantee
that if you ship something you will be able to get the funds for
it."
The pound has continued to slump despite President Michel Aoun's
pledge on June 16 that the central bank would supply the
currency market with dollars to prop it up.
Lebanon defaulted on its foreign currency debt in March, citing
critically low reserves.
(Reporting by Tom Perry; Editing by Gareth Jones)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
