BEIRUT: Lebanon’s battered pound currency has slid to fresh lows against the US dollar despite a new pricing system Beirut hopes can rein in soaring food prices as it negotiates a deal with the International Monetary Fund to climb out of crisis.
The pound has lost over 60% of its value since October, the result of a dwindling stock of dollars that has prompted banks to cut savers’ access to hard currency and ration dollars exclusively for fuel, medicine, and wheat at a pegged rate of 1,507.5 pounds.
One currency dealer said dollars on Wednesday were being bought at 4,250 and sold at 4,500. A second dealer said he was buying at 4,300 versus 4,100 a day earlier but not selling because of scarcity.
Importers said it was getting increasingly difficult to source enough dollars to complete orders, even at higher rates.
“Looking forward only a few weeks ahead, we may not be able to honor our engagements toward our suppliers,” said Hani Bohsali, general manager of Bohsali Foods, a major food importer.
The government and money changers last week launched a unified pricing system, with a gradually reduced rate announced each day with the aim of reaching 3,200 pounds.
As part of the scheme, money changers on Wednesday set a buying price of 3,890 and selling price of 3,940 and the central bank said dealers who did not comply would be penalized. Importers said dollars at this rate were unavailable.
Lebanon’s dollar supply has been further hit by a currency crisis in neighboring Syria. Syrians are piling into dollars to protect against inflation and hedge against the effect of impending US sanctions.
The Lebanese pound’s collapse has threatened renewed unrest as Beirut negotiates an IMF program tied to billions of dollars in financing to kickstart a recovery.
Fresh protests erupted late on Tuesday in Beirut and Tripoli, triggered in part by the currency crisis.
Lebanese pound slides further despite new pricing system
https://arab.news/5qztd
Lebanese pound slides further despite new pricing system
- The pound has lost over 60% of its value since October
- Importers said it was getting increasingly difficult to source enough dollars to complete orders
Free trade negotiations between GCC, India mark new phase of partnership, says sec-gen
RIYADH: The Gulf Cooperation Council’s secretary-general affirmed that the negotiations for a free trade agreement between the GCC and India, and the signing of the joint statement, represents a new phase of strategic partnership.
Jasem Mohamed Al-Budaiwi said that this contributes to enhancing close cooperation and strengthening economic and trade ties, according to the Saudi Press Agency.
This came during the signing ceremony of the joint statement on launching the free trade agreement negotiations between the Al-Budaiwi and India’s Minister of Commerce and Industry, Piyush Goyal, which took place in New Delhi, on Tuesday.
During the signing ceremony, Al-Budaiwi said that the Terms of Reference, signed on Feb. 5, provide a comprehensive and clear framework for these negotiations. The two nations agreed to discuss enhancing cooperation in vital strategic areas, including trade in goods, customs procedures, and services.
Additionally, the framework covers Sanitary and Phytosanitary measures, intellectual property rights, cooperation on Micro, Small, and Medium Enterprises, along with other topics of mutual interest. This reflects the comprehensive nature of the agreement and its ability to keep pace with the future economy.
Al-Budaiwi expressed hope that these negotiations would lead to a comprehensive and ambitious free trade agreement that works to remove customs and non-customs barriers, enhance the flow of quality investments in both directions, and achieve further liberalization in trade and investment cooperation between the GCC and India for mutual benefit.
This would provide a stimulating economic environment and an investment climate that opens broad horizons for the business sector, supports supply chains, and accelerates the pace of economic growth in line with the ambitious developmental visions of the GCC states.
The top official affirmed the full readiness of the General Secretariat to host the first round of negotiations at its headquarters in Riyadh during the second half of this year.
The two sides held a meeting during which they reviewed the existing cooperation relations between the GCC and India and discussed ways to develop and elevate them to broader horizons, serving mutual interests and enhancing opportunities for strategic partnership between the two sides, particularly in the economic, investment, and trade fields.
They praised the role undertaken by the negotiating teams from both sides, appreciating the efforts contributing to reaching a comprehensive agreement that enhances economic integration and supports the smooth flow of trade between the two nations.
