Lebanese caretaker Prime Minister Najib Mikati indicated that Lebanon will gradually adopt a new official exchange rate of 15,000 lira to the dollar, with initial exceptions for bank assets and repayment of housing and personal loans, which will continue at the old official rate. In an interview with Reuters, Mikati sought to clarify the confusion that arose on Wednesday when the Ministry of Finance announced that the rate of 1,507 would end on November 1, as part of the state's efforts to unify the various exchange rates that emerged during the financial crisis.
Mikati stated that the gap between the market rate of 38,000 and other rates must be "closed sooner or later. Things need to balance; this large gap between the so-called official exchange rate and the market rate cannot remain. This will be implemented gradually." Unifying the exchange rate is one of the demands outlined in a draft staff-level agreement with the International Monetary Fund in April.
He added, "The statement by the Finance Minister made it seem that everything would be implemented at once; no, there will be exceptions and things will be executed in specific phases so that matters can be organized. The goal is to create order. Order can only be achieved when we unify the exchange rate according to the market rate. This matter will be taken into consideration; it will take time, and we hope that order will be achieved in a healthy manner without harming anyone and that people will not continue benefiting at the state’s expense."
Mikati explained that the 15,000 lira rate would initially apply to "customs fees, imported goods, and value-added tax... as for the rest, it will be gradually implemented through circulars and decisions issued by the Governor of the Central Bank." He continued, "Nothing will happen suddenly and immediately. For example, today they ask what rate the loans taken in dollars will be repaid at. For individuals who took loans for housing or for personal matters, this will remain at the old rate; a grace period will be given to continue repaying at 1,507 lira."
He also noted, "From now until November 1, circulars from the Governor of the Central Bank and decisions will be issued detailing the specifics of this decision and determining the required exceptions."
