Deputy Governor Selim Shaheen: We Will Impose Restrictions on Access to a New Currency Trading Platform

One of the deputy governors of the Central Bank of Lebanon, Selim Shaheen, indicated on Monday that "the bank will impose restrictions on access to a new currency trading platform, which is set to launch in a few weeks, ensuring that the dollars traded in the system come from legitimate sources." In an interview with "Reuters," Shaheen stated, "The caretaker government has approved the platform, and it will be established within a month or a few weeks." He added, "Market making is not a one-size-fits-all function. Many exchange offices may not meet the requirements necessary to become licensed," noting that institutions "will conduct the necessary audits to ensure that the dollars traded come from legitimate sources." Shaheen expected "the exchange rate on the platform to be close to the parallel market, which will limit arbitrage opportunities." The new platform aims to help the Lebanese currency transition to a managed float by the end of this month, after being pegged to the dollar for a long time. The central bank reduced the long-standing exchange rate in February from 1,500 lira to the dollar to 15,000 lira. Its launch will coincide with the issuance of a new set of circulars by the central bank, which will define the qualifications, roles, and regulatory mechanisms for authorized users, known as market makers.