Report: Fears of Fabricating Monetary Crisis Emerge on Eve of Presidential Election

Some indicators have emerged in the past few days, call for fear of attempts to manipulate -the already fragile- monetary situation in Lebanon in light of the looming presidential elections, al-Akhbar daily reported on Friday.

Central Bank governor Riad Salameh has called the Central Council for an extraordinary meeting on Friday, after a remarkable demand for the dollar in the domestic market on the eve of the presidential election session scheduled for next Monday, added the daily.

The meeting plans to highlight a suggestion on the agenda that aims to ban the conversion of loans operations at the banks from the dollar to the Lebanese pound, arguing that these operations currently constitute the source demand for the dollar.

This procedure is unprecedented, even in conditions of civil war in Lebanon which is subject to an uncontrolled liberal economy, and praises that the “basic economic freedoms” are untouched in Lebanon, according to the daily.

A well-informed banking source expressed surprise at the proposal, and told the daily: “This suggestion harms one of the basic freedoms, the freedom of currency conversion.”

“The demand for the dollar is not very large to call for a move at this level, it is still under control, and the central bank has capability to meet the demand if it grew,” added the source.

He warned that the adoption of the proposal would give an overdose of anxiety, “which is enough to ask questions about the reality of the measure.”