Taking into account the Lebanese pound
exchange rate and the USD food price variation, it allowsto compute a yearly rate of change of the food price in the local currency, and then to compare it with the consumer price inflation.
The second element is that by regaining the confidence of the market, vis a vis the Lebanese pound
, and the increase in deposits in Lebanese pound
, it has allowed the banks to start giving credits in Lebanese pound
"One has to bear in mind that in recent months there has been a major shift of bank deposits from foreign currencies to Lebanese pounds
," he said.
Bankers say Lebanon's central bank intervened two weeks ago for the first time in two years to buy Lebanese pounds
, after fears that the political row could escalate pushed the dollar to the outer limits of its exchange rate against the pound.
BEIRUT: The Lebanese pound
is stable "and will remain stable," Central Bank Gov.
Those foreign currency assets remain almost stable since Cabinet formation, and represent 75 percent of the Lebanese pound
money supply and 25 months of imports, suggesting sound reserve adequacy standards relative to international benchmarks," he added.
Some of the offers reached up to 15 percent for Lebanese pound
deposits and up to 10.25 percent for dollar deposits, depending on the size of the money and maturity period.
The Lebanese pound
has been pegged to the dollar at its current level for more than two decades.
At the economic level, Bassil said that "there are parties are trying to intimidate people from the collapse of the Lebanese Pound
and the economy to push the Lebanese to emigrate." "As we have succeeded in the past to fulfill our promises, we will win this time too," Bassil concluded.
"For example, if a commercial bank has a quota from this program, then it must go to the Central Bank and convert the dollars to Lebanese pound
. Each bank has a quota, depending on its mortgage portfolio," Nassib Ghobril, the head of the economic research at Byblos Bank, said.
Emphasis was put on the soundness of the Lebanese pound
, BDL high reserves, and particularly the undervalued Lebanese Eurobonds as a result of a thin transaction volume.
"The money transfer offices will probably convert the dollars they have to the Lebanese pound
and this will increase demand for the national currency," the source explained.