Banque Du Liban Wasted $1.8 Billion Of Lebanon’s Money Trying To Control The Exchange Rate

Lebanon Just Signed Forensic Audit Contract With Alvarez & Marsal

The financial journalist, Omar Tamo, stated that Bank Du Liban (BDL)’s foreign assets reserves decreased by $1.8 billion from the start of 2022 until May 15, according to its balance sheet.

“BDL has been injecting dollars to strengthen the lira but failed to maintain the scheme due to dwindling reserves. Waste of money,” he continued on Twitter.

Last year, Lebanon’s Central Bank launched the “Sayrafa” platform to monitor money exchanges and stabilize the Lira rate, to no avail, as the Lebanese pound has been decreasing in value on almost a daily basis.

“The hole in BDL’s balance sheet continues to grow due to inaction on a reform program, which translates into the real value of money falling (deposits and LBP notes),” stated Mike Azar, an International and project finance professional, last week.

Lebanon’s Association of Banks (ABL) stated on Tuesday that it rejects the government’s financial recovery plan.

According to ABL, the plan approved by the Deputy Prime Minister, Saade Al-Shami, will disavow the state and the Central Bank “from their obligations to pay off the debts incurred by them and to load the entire loss, exceeding $70 billion, on depositors after the plan eliminated the banks’ funds.”

However, Lebanon is now enduring one of the direst economic crises, leaving thousands of people living in severe poverty.

Lebanon’s financial and banking system is also struggling aboard, as Lebanese banks in Cyprus will close by the end of 2022.

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