BEIRUT, Aug. 11 (Reuters) – Lebanese central bank governor Riad Salameh said on Wednesday he could no longer open lines of credit for fuel imports or subsidize its purchase, a ministerial source said and on TV al -Jadeed.
Reuters could not immediately reach Salameh to comment on his remarks at a meeting of the Supreme Defense Council.
Lebanon suffers from a crippling fuel shortage due to a financial crisis that has caused the Lebanese pound to fall more than 90% against the dollar in less than two years.
Since the onset of the crisis, the central bank has used its dollar reserves to finance fuel imports at official exchange rates well below the price at which dollars changed hands in the parallel market.
The government hiked fuel prices in June after the central bank began providing fuel lines of credit at a rate of 3,900 pounds to the dollar, higher than the official rate of 1,500 pounds but still well under. below the parallel market rate. Read more
Dollars were changing hands at around £ 20,000 on the parallel market on Wednesday.
Reporting by Nafisa Eltahir / Tom Perry; Editing by Alison Williams and Giles Elgood
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