In the aftermath of the conflict between Hamas and Israel, Lebanon’s Central Bank (BDL) implemented a set of measures aimed at preventing any fluctuations in the exchange rate of the Lebanese pound against the dollar amid regional security events. These efforts seem to have borne fruit.
According to central bank sources quoted by the Al-Markazia agency, the measures taken by the Central Bank in cooperation with the government, the Ministry of Finance and the banks, have been effective. Such measures included refraining from injecting more Lebanese pounds into the market to prevent speculation on the Lebanese pound.
As soon as the war in Gaza broke out, contractors and suppliers rushed to state institutions and banks to ask for their pounds in order to convert them into dollars, but Vice-Governor Wassim Mansouri intervened to withhold such transactions.
The same sources said the measures have been taken to limit the money supply, as they revealed that the volume of Lebanese pounds in circulation between citizens, institutions and banks has been reduced from around 62 billion pounds to 58 billion pounds, imposing further restrictions on speculators.
The sources also pointed out that the BDL currently maintains the capacity to pursue a policy of monetary stability. However, they added, the overall economic situation remains challenging. Forecasts indicate a drop in business activity of up to around 50%, particularly in the tourism sector. This could have a negative impact on the wages and benefits received by employees in both the tourism industry and other private sectors.
