Lebanon: Speculations Swing Beirut’s Dollar Up, Down

 A man counts US dollar banknotes next to Lebanese pounds at a currency exchange shop in Beirut, Lebanon April 24, 2020. REUTERS/Mohamed Azakir
A man counts US dollar banknotes next to Lebanese pounds at a currency exchange shop in Beirut, Lebanon April 24, 2020. REUTERS/Mohamed Azakir
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Lebanon: Speculations Swing Beirut’s Dollar Up, Down

 A man counts US dollar banknotes next to Lebanese pounds at a currency exchange shop in Beirut, Lebanon April 24, 2020. REUTERS/Mohamed Azakir
A man counts US dollar banknotes next to Lebanese pounds at a currency exchange shop in Beirut, Lebanon April 24, 2020. REUTERS/Mohamed Azakir

The Lebanese people’s cheers did not last long with the tangible improvement in the exchange rate and the speculations about the US dollar reaching the threshold of LBP 5,000.

The green currency rose again on Monday and reached LBP 8,000 by the end of day.

Banking sources told Asharq Al-Awsat that unfounded information spread about a dramatic decrease in the value of the USD against the Lebanese pound, with the aim to motivate some home savers and non-currency dealers to offer hard currency.

According to the sources, rumors also overstated unconfirmed political moves and inflated imminent external support, in addition to amounts “brought in by expatriates after the reopening of Beirut’s international airport.”

However, the banking officials noted that the re-delegation of the banks to manage the subsidized dollar portfolio - which is provided by the central bank at a price of LBP 3,900 for the benefit of importers of the food and basic commodity basket approved by the Ministry of Economy - actually contributed to curbing the real and justified demand for the dollar at the licensed cashiers and created a less tense atmosphere in the parallel market.

On the other hand, Lebanon’s stumbled negotiations with the International Monetary Fund (IMF) have generated negative factors that put further pressure on the national currency.

The talks with the IMF experts were aimed at securing an easy financing program to help the government tackle the large financial gap that has affected all production, labor and employment sectors.



US Treasury's Bessent Urges IMF, World Bank to Refocus on Core Missions

 Treasury Secretary Scott Bessent speaks, Wednesday, April 23, 2025, to the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington. (AP)
Treasury Secretary Scott Bessent speaks, Wednesday, April 23, 2025, to the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington. (AP)
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US Treasury's Bessent Urges IMF, World Bank to Refocus on Core Missions

 Treasury Secretary Scott Bessent speaks, Wednesday, April 23, 2025, to the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington. (AP)
Treasury Secretary Scott Bessent speaks, Wednesday, April 23, 2025, to the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington. (AP)

US Treasury Secretary Scott Bessent on Wednesday called on the International Monetary Fund and World Bank to refocus on their core missions of macroeconomic stability and development, arguing that they have strayed too far into vanity projects such as climate change that have reduced their effectiveness.

Bessent, in remarks outlining his vision for US engagement with the IMF and World Bank on the sidelines of the institutions' spring meetings, said that they serve critical roles in the international financial system.

"And the Trump administration is eager to work with them - so long as they can stay true to their missions," Bessent said in prepared remarks to the Institute of International Finance.

"The IMF and World Bank have enduring value. But mission creep has knocked these institutions off course. We must enact key reforms to ensure the Bretton Woods institutions are serving their stakeholders - not the other way around," he said, calling on US allies to join the effort. "America First does not mean America alone."

Bessent said the IMF needed to focus on its key mandate and adhere to strong standards in its lending.

"The IMF was once unwavering in its mission of promoting global monetary cooperation and financial stability. Now it devotes disproportionate time and resources to work on climate change, gender, and social issues. These issues are not the IMF's mission."

"And sometimes, the IMF needs to say 'No.' The organization has no obligation to lend to countries that fail to implement reforms."

Bessent added that the World Bank must be "tech-neutral and prioritize affordability in energy investment. In most cases, this means investing in gas and other fossil fuel-based energy production."

He added that it could also finance renewable energy projects along with systems to manage energy latency in wind and solar.