June 7, 2023

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Governor of Bank to Liban, with fiery statements, decides to suspend fuel subsidies - Politics - News

Governor of Bank to Liban, with fiery statements, decides to suspend fuel subsidies – Politics – News

Riyadh Salameh, the governor of the Central Bank of Lebanon, said no one was running the country, and that the government could solve the problem quickly by defending its decision to suspend fuel subsidies, reducing tough currency reserves and providing what is needed. Law

In an interview aired Saturday, Salamah responded to the government’s allegations that he had made a unilateral decision when he announced the end of support on Wednesday, and said everyone knew his decision was coming.

Salameh said Lebanon could recover, but he could not say how many years it would take. In an interview with Radio Free Lebanon, he added that so far, “there is no control in the country.”

The central bank actually supports the price of fuel and other major imports, offering the dollar at a lower exchange rate than the actual price of the Lebanese pound, which is currently trading at 39 3900 per dollar, while trading at more than 20,000. The parallel market, which filters out reserves, which Salame said is now $ 14 billion.

To continue to provide such support, the Lebanese central bank said it needed legislation that would allow compulsory reserves and the withdrawal of a portion of the deposit required to maintain the law.

Salameh said, “We say to everyone, ‘We want to spend from compulsory reserve. We are.’ Give us the law, it takes five minutes.

The government says fuel prices should not be affected, and oil importers have demanded clarification that they cannot import at market prices and cannot sell at subsidized prices.

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The central bank and the Petroleum Department administration advised importers to sell their shares at a subsidized price of 3, 3,900 per dollar and to prioritize hospitals and other essential services.

Critics of the subsidy system claim to promote smuggling and hoarding, offering a fraction of their true price.

Salameh said the bank was committed to financing traders who did not supply goods to the market and spent more than $ 800 million last month on fuel imports, which would last for three months.

Salameh said Lebanon could be relieved of its crisis if the government that thinks of reform takes responsibility. He said the Lebanese pound “is a hostage to forming a government and reforms today.”

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