BEIRUT: Lebanon’s central bank said on Thursday it had set a new rate of 8,000 Lebanese pounds to the US dollar for withdrawals from bank deposits denominated in dollars but which can now only be accessed in the local currency.
The rate was previously set at 3,900 pounds, which implied a “haircut” or loss of more than 80 percent at the current market rate of around 25,000 pounds per dollar. The new rate represents a haircut of around 70 percent.
The central bank also set a withdrawal ceiling of $3,000 per month equivalent in Lebanese pounds for account-holders, who have been unable to freely access their savings since the collapse of the financial sector in 2019.
The central bank had maintained a pegged rate of 1,500 pounds per dollar until summer 2019, when it unofficially allowed the currency to become untethered after accumulating tens of billions of dollars in losses.
The pound has since lost more than 90 percent of its value, throwing the majority of Lebanon’s population into poverty and leading to shortages of basic goods such as medicines in the formerly middle-income country.
The central bank officially maintains a rate of 1,500 but almost all goods trade at the market rate.
Lebanon’s Central Bank sets new rate for withdrawals from dollar deposits
https://arab.news/c2ry2
Lebanon’s Central Bank sets new rate for withdrawals from dollar deposits
- The rate was previously set at 3,900 pounds
- The central bank also set a withdrawal ceiling of $3,000 per month equivalent in Lebanese pounds
Closing Bell: Saudi markets end week in green
RIYADH: Saudi Arabia’s Tadawul All Share Index continued its upward movement for the second consecutive day as it gained 18.09 points, or 0.17 percent, to close at 10,473.23.
The total trading turnover of the benchmark index stood at SR4.11 billion ($1.10 billion), with 72 of the listed stocks advancing, and 183 declining.
The Kingdom’s parallel market Nomu also gained 46.54 points to close at 22,538.40.
The MSCI Tadawul Index edged up by 0.34 percent to 1,397.18.
The best-performing stock on the main market was National Shipping Co. of Saudi Arabia, also known as Bahri, as its share price advanced by 9.96 percent to SR26.72.
Yamama Cement Co. saw its listing increase by 5.77 percent to SR24.95.
Saudi Pharmaceutical Industries and Medical Appliances Corp. also saw its stock price climb by 3.96 percent to SR26.24.
Conversely, the share price of Red Sea International Co. declined by 5.96 percent to SR29.96.
On the announcements front, Riyad Bank announced that it completed the issuance of dollar-denominated, Tier 2 capital sustainable notes, with a total value of $1 billion, under its medium-term note program.
In a Tadawul statement, the financial institution revealed that the settlement of the notes is expected to take place on Jan. 14.
The total number of notes stands at 5,000, based on the minimum currency denomination and total issue volume, while the par value is $200,000.
The notes offer an interest rate of 5.805 percent per annum, with a maturity period of 10 years and callable after five years.
The bank added that the notes will be listed on the London Stock Exchange’s International Securities Market.
The share price of Riyad Bank edged up by 0.68 percent to SR26.84.
