On Tuesday, the Lebanese pound exchange rate fell to a record low: from 93 thousand to 100 thousand per $1. According to Al Jadeed TV, the drop in the value of the Lebanese currency was due to resumption of an indefinite strike since March 14, announced by the Association of Lebanese Banks (ALB). This decision was taken in response to measures taken by the judicial authorities, who are questioning directors and board members of private banks as part of an ongoing investigation into financial mismanagement in the banking sector.
The ALB strike began on February 2, when it became known that the authorities intended to audit 14 major banks, as recommended by the International Monetary Fund (IMF), in connection with allegations of illegal currency transfers abroad. On February 27, the ALB suspended the strike for two weeks at the request of Prime Minister Najib Mikati, given "the difficult economic situation in Lebanon and the need to provide banking services to citizens at the end of the month."
The ALB held warning strikes from September 16 to 26 and from October 7 to 12 to protest attempts to seize bank offices by disgruntled depositors who demanded cash from accounts frozen since 2019 because of the financial collapse. The association failed to get the government to step up security for banking institutions, and since last October, customer service at banks has been by appointment only.
On Wednesday, March 15, the first court hearing will be held in the case of Riad Salame, governor of the Central Bank of Lebanon, who is charged with money laundering and illicit enrichment. The two individuals involved in the fraudulent document forgery and tax evasion are Marianne Hoveik, the governor's assistant, and his brother, businessman Raja Salameh, who will also be prosecuted.
The lawsuit against Salame, 72, who has been the head of the Central Bank of Lebanon since 1993, was initiated by lawyers from the non-governmental organization "People Want a Change of Regime." The high-ranking official is also accused of conducting a flawed monetary policy that led to the collapse of the national currency.
Since October 2019, when the country plunged into an unprecedented socio-economic crisis, the dollar has grown 66 times against the Lebanese pound.
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Photo: Josh Appel\Unsplash
Based on materials from TASS