The dollar/Lebanese lira exchange rate reached a new record of LL25,300 to the dollar yesterday morning. (Archive photo: Joseph Eid/AFP)
As military operations continue in Lebanon and the prospect of the war stretching over several months gradually takes hold, L’Orient-Le Jour learned that Banque du Liban (BDL, central bank), is bracing for a scenario of sharp deterioration.In a clear message to government officials, BDL indicated it would not intervene to defend the lira if it comes under renewed speculative pressure, as was the case between autumn 2019 and summer 2023. The message added that BDL does not intend to cushion a potential shortage of dollars on the market should the war and its economic repercussions further heighten foreign currency pressures.The central bank justified its stance by invoking what it now describes as an untouchable principle: the dollars in its possession will not be injected into the market, as they consist of the depositors’ funds, it...
As military operations continue in Lebanon and the prospect of the war stretching over several months gradually takes hold, L’Orient-Le Jour learned that Banque du Liban (BDL, central bank), is bracing for a scenario of sharp deterioration.In a clear message to government officials, BDL indicated it would not intervene to defend the lira if it comes under renewed speculative pressure, as was the case between autumn 2019 and summer 2023. The message added that BDL does not intend to cushion a potential shortage of dollars on the market should the war and its economic repercussions further heighten foreign currency pressures.The central bank justified its stance by invoking what it now describes as an untouchable principle: the dollars in its possession will not be injected into the market, as they consist of the depositors’ funds,...
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