On Monday, the Central Council of the Banque du Liban (BDL) agreed that the institution will continue to pay public sector salaries in US dollars at the Sayrafa platform exchange rate of LBP 85,500 for at least the next two months.

The Central Council’s decision is based on the fact that relief is provided to civil servants from the 5% that the employee earns as the difference between the parallel market exchange rate (LBP 90,000) and the dollars that the Banque du Liban insures at the price of LBP 85,500.

Furthermore, BDL does not consider the difference as a loss, since it takes into account the absence of pressure on the pound. Indeed, if salaries were suddenly injected into the Lebanese pound market, civil servants would have rushed to buy dollars in a way that could undermine the stability of the exchange rate.

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