Compensation guarantee: the dollar at £ 3,900?

The Central Board of Banque du Liban approved the request presented by the National Social Security Fund, under the title “Protection of the purchase value of compensation for termination of service.” The “guarantee” asked the Banque du Liban to treat termination compensation for employees and the procedure recorded in the “fund” in the same way as it was adopted with owners of small deposits in banks, since their Money is transferred from the pound to the dollar based on the price of 1515 pounds per dollar, then converted back to the pound. At the “platform” price of around £ 3,900 per dollar. Instead of compensation having lost about 80 percent of its value compared to the market dollar, this loss is reduced to less than 50 percent, in the event that the black market price of the dollar falls. keep within the 7,500 pound limits (which is not guaranteed). And it seems that the governor of the Central Bank of Lebanon, Riad Salameh, is inclined to apply this measure to all the compensation owed since the beginning of this year. According to figures provided by the National Social Security Fund, around 13,600 checks were issued to users requesting end-of-service compensation, from the beginning of the year to the end of July, for a total value of about 440,000 million pounds. It found that more than 6,650 awards, each of which is less than 10 million Lebanese pounds, compared to 2,280 awards, each of which exceeds the threshold of 50 million pounds. The Central Bank of Lebanon will cover the difference between the original compensation and what it will become once the aforementioned process is approved. This measure will contribute to increasing the money supply in the market and is expected to increase pressure on the price of the lira on the black market.