On Thursday, May 21st, Prime Minister Hassan Diab announced that the Central Bank will intervene in the market to “protect the Lebanese pound and curb the rise in the dollar exchange rate,” reported The Daily Star.
He also stated that the import of basic goods will be subsidized to reduce skyrocketing prices, which have seen a surge with the devaluation of the Lebanese lira to the dollar.
Central Bank governor Riad Salameh later backed up Diab’s statement, saying that, as of Wednesday, May 27th, the bank will take measures to “defend the local currency” and provide dollars for importing basic commodities.
It appears that the Prime Minister and Central Bank governor have finally reached an agreement after some awkward public confrontations earlier this month and are working together to improve living conditions.
On Monday, protests took place in front of the Ministry of Economy and Trade in Beirut, to stand against the high living expenses.
Among them were the bread distributors protesting against the bakeries increasing the price of bread on them, which makes it impossible for them to make a living.
In context, the Association of Banks in Lebanon (ABL) has rejected the government rescue plan as ineffective in tackling the roots of the economic crisis. ABL countered it by submitting its own financial plan, which the association deems able to save the country.