Salameh: BDL Can't Control Black Market, Activity in It Limited
Central Bank Governor Riad Salameh announced Friday that Banque du Liban has no ability to control the currency black market while downplaying the size of its transactions.
“The Lebanese central bank, like any central bank in the world, has no ability to control this market, which is receiving undeserved publicity, seeing as activity in it is limited and unorganized,” said Salameh after meeting Prime Minister Hassan Diab at the Grand Serail along with Finance Minister Raoul Nehme and General Security chief Maj. Gen. Abbas Ibrahim.
He added that the central bank’s objective is to reach a situation in which the biggest number of money exchange operations are carried out within banks and within organized markets.
Noting that the central bank has launched a long-awaited electronic platform that will organize transactions at money exchange shops, Salameh said all licensed money changers will be part of the platform.
“During the first session today, sale and purchase transactions worth more than $8 million took place, at an exchange rate ranging between LBP 3,850 and LBP 3,900,” the governor added.
He noted that “this platform will be further activated and will be the main reference for the money exchange market.”
Salameh also pointed out that banks can join the platform although their official exchange rate will remain pegged at LBP 1,515. “This issue helps control the prices of fuel, medicine, foodstuffs and flour,” he added.
The issue is that there is NO confidence from the government---he can't do squat if the government can't do anything. I know they are trying to scapegoat him, but the MP's should really be looking in the mirror first.