PHOTO
U.S. dollar banknotes and Lebanese pounds are pictured at a currency exchange shop in Beirut, Lebanon April 24, 2020. Image used for illustrator purpose
BEIRUT: The Lebanese pound dropped against the U.S. dollar on the parallel market Tuesday, after having risen slightly just a day prior.
The Lebanese pound was trading at around LL4,000 against the dollar at the parallel market, with a number of exchangers withholding the sale of dollars.
On Monday, the Lebanese pound rose and was trading at around LL3,750 at the parallel market, a significant rise as it had been trading above LL4,000 in recent weeks, even reaching around LL4,300.
The Central Bank peg of the Lebanese pound still remains at 1,507.5 and is only used now for a handful of items, like imports of fuel, wheat and industrial materials.
Licensed exchange shops have expressed their commitment to BDLs official parallel market rate of LL3,200 to the dollar, but most have been closed after the Syndicate of Money Changes in Lebanon announced an open strike April 28. They are demanding the release of money changers who were arrested for not sticking to BDLs official rate.
State Prosecutor Ghassan Oueidat ordered the Telecoms Ministry on April 30 to block 28 mobile applications that show the daily black market dollar exchange rate. The lack of transparency behind these apps means they could be used to manipulate exchange rates for speculative purposes. Exchangers have also complained that they are unable to stick to BDLs rate because customers challenge them on their rates, presenting the rate displayed by these apps.
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