The rise in the dollar exchange rate … What's going on?

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Under the title of "Caisses en dollars" at 1530 pounds: the price of the policies of the Bank of Lebanon "writes Mohammed Wahba in the newspaper" News "and said: Earlier this week, the exchange rate of the Lebanese pound to cashiers at 1530 pounds for every dollar, an increase of 22.5 pounds for the official price of about 1507.5 lire.This development is without cause direct, which raises concerns about the beginning of the crisis and to the financial crisis, especially as the high exchange rate on the market leads to a decline in purchasing power and stifles consumption

Without any direct reason, the informal market experienced a new leap in the exchange rate of the lira to reach a dollar in parallel with about 1530 lire. "The priorities of the monetary policy of the Bank of Lebanon are the reason," said former minister Charbel Nahhas. "The problem is also related to the negative impact on the power of purchase," he said. "We are at the beginning of this path."

Formally, the exchange rate of the lira against the dollar remains on average at 1507.5 lire. This equation exists only between the Bank of Lebanon and the banks. In the market, that is, between cashiers, traders and consumers, the exchange rate between these parties is based on 1530 pounds for one dollar, an increase of 1.5% or 22, 5 pounds. With the official price.

It is remarkable that this evolution of prices is not in line with any other evolution directly causing it, contrary to the past. For example, the exchange rate rose on the day Finance Minister Ali Hbadan Khalil announced that he was planning to restructure the public debt, as was the day when Prime Minister Saad al-Hariri set himself up for the first time. is reunited in Saudi Arabia, and the same day that Moody's brought Lebanon back to a "" There are many examples of synchronization between the outbreak of crises of different natures and the high exchange rate. However, no immediate crisis has resulted in a three-day exchange rate hike so far, if it is "that it is linked to a slow and steady process at the same time", said MP Nicola Nahas.

In accordance with the objectives and priorities of the deflationary monetary policy, the burden of market financing was shifted from the Bank of Lebanon to the banks and then to the cashiers and importers who transferred them to the customers. The relationship between the banks and the Bank of Lebanon is based on the official exchange rate and restrictions, conditions that do not apply to most elements of the company's economic activity ( importers, industrialists, consumers, etc.). The majority used cashiers to buy dollars. However, in view of the urgent need of the Bank of Lebanon and its engineers, who are absorbing market dollars to strengthen their holdings of foreign exchange, the amount of dollars in the market has fallen sharply, leading to an increase in price.
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