A shortage of dollars will be painful for Lebanon, as it relies so heavily on imported goods
of a Beirut bank, three customers stuff wads of $100 bills into plastic bags. Each note has its serial number recorded on a receipt, as local law requires. One man’s receipt was so long it trailed on the ground as he left the branch. Surreal as it seems, this scene would be common—if banks had dollars to spare. Over the past few weeks customers have queued for hours only to learn that they cannot access their money. One was told that his branch had less than $2,000 in the vault.
s have stopped dispensing dollars. Banks have quietly lowered withdrawal limits to $1,000 a day and imposed arbitrary rules, like banning dollar transactions after 5pm and on weekends, that in effect bar workers from using their accounts. Businesses are forced into a black market, where a dollar now fetches 1,600 pounds, and occasionally up to 1,750. The government insists the situation is under control. The value of such reassurances is depreciating almost as fast as the pound.
On September 30th the central bank promised to provide dollars at the official rate for firms that import fuel, medicine and wheat. The guarantee should prevent any immediate scarcity. It could also leave Lebanon with, in effect, a two-tier exchange rate. A shortage of dollars is not all bad news, since it should discourage imports and trim a current-account deficit that was 25% ofSuch a decision is well beyond the mandate of most central bankers.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Horror Stories From the Vaping Crisis Are Getting WorseThe lungs of injured e-cigarette smokers actually resemble the lungs of chemical warfare victims, and doctors are speaking out about the crisis
Read more »
Breast Cancer Death Rate Continues To Drop, But Black Women Have Far Worse Chance Of SurvivalBreast cancer survival continues to rise, but huge disparities exist between white women and black women.
Read more »
Who will buy Lebanon's Eurobond? Not us, say foreign fund managersLebanon may need support from loyal local banks or even friendly Gulf states to ...
Read more »
As Portugal heads to a new election, a cloud is hanging over its export-led economyEconomists are questioning how long Portugal's economic recovery will last with a new political cycle about to begin.
Read more »