The price of the dollar today in Lebanon witnessed a noticeable increase during the beginning of trading on Tuesday, April 12, 2022, in the unofficial (black) parallel market.
The announcement of the signing of the preliminary agreement between Lebanon and the International Monetary Fund began to generate positive repercussions on the local monetary and financial markets, amid reviving hopes for the commitment of the government and Parliament to respond quickly to the adoption of a package of reform laws in the financial and banking fields and complementary procedural steps to move to the stage of concluding a financing program agreement over the course of a period of time. 4 years and $3 billion.
Within the markets, it was noted that the prices of Lebanon’s international bonds witnessed a strong and explicit rise on the Luxembourg Stock Exchange, reaching the highest available limit of 10%, bringing prices to an average of 13 cents per dollar, following falling below 10 cents previously and reaching regarding 18 cents at the upper limit during public.
The Lebanese Eurobond market, according to Bank Audi’s weekly report, positively seized the news that Lebanon had reached a preliminary agreement with the International Monetary Fund on economic policies, hoping that this would open the way for negotiations with bond holders. Sovereign securities recorded weekly increases in prices along the yield curve, ranging between half a dollar and a dollar (from a hundred).
The price of the dollar today in Lebanon
The exchange rate of the dollar was opened in the parallel market, at a price ranging between 24500-24700 Lebanese pounds per dollar.
It should be noted that the unofficial (black) parallel market dollar closed yesterday at a price ranging between 24350 – 24400 Lebanese pounds per dollar.
The price of the dollar in “exchange”
Yesterday, Sunday, the trading volume on the “Sayrafa” platform amounted to 64.5 million dollars at a rate of 22,250 Lebanese pounds per dollar, according to the exchange rates of operations carried out by banks and exchange institutions on the platform.
The Central Bank of Lebanon called on all banks and exchange institutions to continue recording all purchase and sale operations on the “Sayrafa” platform, in accordance with the circulars issued in this regard.
3 notes on the IMF agreement
Experts believe that there are many observations on Lebanon’s agreement with the International Monetary Fund, and they consider that it must be recognized that the framework agreement is just a “preliminary agreement” that drew Lebanon a clear road map out of the current economic crisis, and refuted in detail the reforms required by the Lebanese authorities as conditions for approval The Executive Board of the International Monetary Fund to grant a loan of 3 billion dollars.
They pointed out that, at first glance, the observer stops at the meager value of this loan, especially if it is put in parallel with the size of the collapse and the total losses of at least 80 billion dollars.
They made it clear that this loan is for comparison only, hardly equivalent to what the Banque du Liban pumps during 5 or 6 months into the financial markets, whether to support fuels, as was customary in the past, or to support the lira, as we are currently dealing with it.
They added, however, that the value of the loan granted exceeds the value of the allocated amount. Its true value lies in the signature of the IMF specifically. This signature in itself constitutes the guarantee required by the donor countries, and thus paves the way for more aid and agreements that may reach the limits of $15 billion, according to what is being circulated by some follow-up circles.
As for the second observation, which, according to experts, must be stopped, it is the implicit acknowledgment of the hierarchies on deposits, which contradicts the repeated statements of officials that it does not harm the rights of depositors.
The third observation that the experts made is related to the forthcoming reforms that the Lebanese are tired of repeating, which are, as it became known, the conditions required for the disbursement of funds. It is the same crisis that is repeated at every international entitlement, during every conference, in every final statement, since Paris 3, to the Sader conference, to the statements of the International Support Group, the list is long and endless, but the scene is one: international parties commit to aid and require reforms and an authority that promises to implement them. And it does not implement any of it, according to the Lebanese newspaper, Nidaa Al-Watan.
