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The black market dollar continues to rise, touching 10,000 pounds per dollar, its highest level since last November.
The exchange rate of the dollar against the Lebanese pound rose yesterday, to an unprecedented level since last November, and touched 10,000 pounds per dollar, an issue that some linked to the increase in demand from imported merchants for market dollars black. during the last weeks due to the lack of opening of the Central Bank of Lebanon Credits for subsidized goods, in a step that is part of the “mosaic”, as described by the economist Jan Tawila. The prices of basic products, such as meat and petroleum products, rose suddenly, and this coincided with the rise in the price of the dollar, which reached 9,400 pounds per dollar, the lowest in months, as reported in the today’s edition. of the Al-Sharq Al-Awsat newspaper.
Tawila believes in an interview with Asharq Al-Awsat that the Central Bank’s foreign exchange reserves are no longer sufficient to continue subsidizing, so what is happening is stopping the subsidy, even without an official announcement of certain goods, and continuing to support other goods. adding that “this abused method that is similar to giving a pill to a critically ill patient, will not last long”, because “sooner or later the support will stop due to the depletion of reserves, especially since no dollars will enter Lebanon before a political solution is found, and then it will work on an economic plan based on supporting production, exporting it and attracting foreign investment.
Tawila believes that the continuation of the subsidy until now is due to the decrease in the volume of consumption in Lebanon and, therefore, to the decrease in imports, which means a decrease in the value of the invoice supported by the “Banque du Liban “. However, this issue will extend the subsidy for a very short period and will not contribute to its continuation.
Tawila believes that as long as the situation remains the same, the price of the dollar will continue to rise, noting that the Bank of Lebanon prints notes in Lebanese currency on a monthly basis, in order to secure depositors’ funds based on the exchange of the platform. rate (3900 pounds per dollar), and pay public sector salaries, noting that the solution is through establishing a clear economic plan and gaining the trust of the international community to ensure the entry of a new dollar before the social explosion .
Importers of subsidized goods, especially non-essential goods (medicines, fuel and wheat), which the Banque du Liban subsidizes by insuring their import dollars based on the exchange rate of 3,900 pounds, reiterate that “there is no official decision to raise the grant, but in practice the approval of the Banque du Liban of the credits for subsidized materials takes more than a month “.
The head of the Food Importers Union, Hani Bohsali, confirmed to Asharq Al-Awsat that the import of subsidized goods within the food basket has decreased significantly, due to the delay of the Banque du Liban in approving appropriations related to these goods , which leads traders not to risk importing them.
The owners of the stores dedicated to the sale of food confirm that the traders are currently delivering them, and for almost a month, half of the usual amount of subsidized materials, which initially was not enough for the needs of the market.
The delay in the Bank of Lebanon transactions is also confirmed by the head of the Union of Meat Importers, Gabi Dkramjian, noting in an interview with Asharq Al-Awsat that this delay has increased significantly over the last few months, and now exceeds the period of one month.
Dkramjian assured that the importation continues, and that until now, as long as the issue is limited to delay, not stop, there will be no increase in the prices of imported meat.
In turn, the head of the Lebanese Poultry Breeders’ Union, Moussa Fariji, explains that the Banque du Liban does not pay the required support for the poultry and feed needs that constitute 70 percent of the production cost, and that the subsidized materials in the warehouses are only enough for 35 days.
In an interview with Asharq Al-Awsat, Friji said that if the Banque du Liban continued with this matter, the price of poultry would naturally increase, but not before a month and a half.
The price of gasoline, which the Banque du Liban insures for 85 percent of its imports based on the price of 1,500 pounds to the dollar, has risen sharply in recent weeks, until the price of a can of gasoline reached 32,200 pounds. , after I did. Not exceeding 24 thousand, less than two months ago, which means an increase of around 30 percent. The representative of the fuel distributors, Fadi Abu Shakra, attributes the matter to two reasons: the first is the high price of a barrel of oil of 5 dollars worldwide, and the high price of the dollar in Lebanon, which the importer buys to the black market to secure 15 percent, which is not subsidized by the value of fuel imports.
In an interview with Asharq Al-Awsat, Abu Shakra indicated that the price of gasoline will continue to rise if the price of the dollar continues to rise, and that the issue has nothing to do with the current lifting of subsidies.
As for the price of a package of bread (supported by wheat import subsidies), it rose about 50 percent due to rising wheat prices around the world. Regarding medicine, the head of the Union of Drug Importers, Karim Jabara, confirmed to “Asharq Al-Awsat” that the approval of the Central Bank of Lebanon is still delayed for more than three months, and that this situation has continued since then. the last quarter of last year.
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