Jaber assures there are no concerns over public sector salaries and exchange rate stability

BEIRUT — As war resumed in Lebanon between Israel and Hezbollah, Finance Minister Yassine Jaber said there were no concerns about the payment of public sector salaries and pensions or about the stability of the exchange rate, which has been effectively pegged at 89,500 Lebanese liras to the dollar since 2023 after four years of collapse linked to the 2019 financial crisis.

The financial and monetary situation “remains under control,” Jaber said in an interview with An-Nahar, attributing this to “ongoing contacts and coordination between the Banque du Liban [central bank] and other concerned parties.”

“The central bank’s management is acting wisely and competently and is handling the situation in a way that preserves stability,” he said, adding that the country’s foreign currency reserves amount to “$12 billion, including $1 billion in available liquid assets for immediate intervention if needed.”

On Sunday, Prime Minister Nawaf Salam met with Jaber, Economy and Trade Minister Amer Bisat and Banque du Liban Governor Karim Souhaid to review preventive measures and emergency mechanisms aimed at stabilizing the monetary situation. At the time, the regional war launched the previous day by Israel and the United States against Iran had not yet spilled over into Lebanon.

Jaber also said that “salaries and pensions are secured for the coming period, thanks to a financial buffer that will allow us to get through this phase without difficulties.”

Payments to the military were increased in 2025, and the government recently approved a new adjustment for the entire public sector. However, the measure is expected to be financed in part by a one-point increase in the VAT — a step that Parliament has not yet approved.