Lebanese Money Changers Suspend Strike over Dollar Crisis

The Syndicate of Money Changers in Lebanon has suspended the call for a general strike including the suspension of work in exchange corporations, until a meeting next Tuesday with President Michel Aoun.

The meeting will work on finding solutions to the consequences of the crisis of the dollar shortage in the markets.

The Syndicate announced earlier that they were heading towards a general strike on Monday during which a complete closure of their shops will take place, in protest against the authorities, which continued to close several exchange businesses due to the alleged manipulation of the exchange rate of the Lebanese pound against the US dollar

The Union of Cashiers pointed out that they received a call today from the Presidential Palace to hold a meeting between the Board of Directors and Aoun, in light of the severe shortage of dollars in Lebanon, leading to the depreciation of the Lebanese currency.

[caption id="attachment_83267" align="aligncenter" width="762"] Lebanon's protests against dollar crises[/caption]

During the past two days, the Lebanese State Security has begun summoning and investigating several exchange shop owners in the light of decisions issued by the Public Prosecution in some areas, accusing them of manipulating the exchange rate.

Lebanon is in the midst of a severe financial and economic crisis, which has worsened in recent months and has recently been reflected in the level of availability of the US dollar in the markets.

Despite renewed assurances by the Governor of the Central Bank Riad Salameh, who recently announced that the monetary reserve is assessed at $ 38.5 billion in addition to the strategic gold reserve, the greenback can no longer be found in ATMs.

[caption id="attachment_83269" align="aligncenter" width="900"] Lebanese  in front of an ATM machine to withdraw money[/caption]

The fuel sector in Lebanon announced a general strike from Monday morning, during which the petrol stations will refrain from supplying cars and vehicles with gasoline. The bakeries and ovens sector waved a similar action within a few days, especially in light of the strategic decline in wheat stocks to critical levels.

Importers in several sectors, mainly oil derivatives, confirm that the dollar is not available at the official exchange rate against the pound (LBP 1,513 per dollar), pointing out that they import strategic commodities, including medicine and oil, in dollars and sell them in local currency.

Banks no longer provide importers with dollars. They are forced to buy it from the black market at around 1,600 LBP, which exposes them to significant losses.