The Central Bank of Lebanon revealed that it will start providing dollars to import basic foodstuffs, as part of "necessary measures" to defend the troubled lira, whose low prices have pushed prices so high.
This late move comes as the last possible solution to protect the local currency after Beirut lost all its available ammunition in order to save the paralyzed economy, which affected the livelihood of the Lebanese.
The Lebanese pound has lost more than half of its value since last October, with the country plunging into a financial crisis on a scale not seen before, causing the government to sound sirens from entering the country into a deeper crisis.
Central Bank announced that the new procedures will begin next week (27th of May), noting that commercial banks can participate.
Prime Minister Hassan Diab had indicated in a televised speech before the Central announced his move until he reached "a promise from the Governor of the Banque du Liban that the bank will intervene in the market to protect the Lebanese pound and curb the rise in the exchange rate." he revealed that the import of basic foodstuffs and price control will be supported, and the Lebanese people will soon see a decline in prices.
The government unanimously approved, in early May, a 5-year bailout plan to pull the local economy out of sharp downturns, which led to Beirut's inability to pay foreign debt.
Source (London Arab newspaper, Edited)
