Home ›› 15 Aug 2021 ›› World Biz
Lebanon’s central bank governor vowed Saturday not to reverse his decision to stop subsidising fuel imports, unless parliament votes to force the monetary authority to raid its compulsory foreign reserves.
The country is gripped by one of the world’s worst economic crises since the 1850’s, according to the World Bank, and is struggling with shortages of fuel and other necessities, amid a black market plunge in the local currency of more than 90 percent.
Foreign exchange reserves have dwindled in recent months to now stand at $14 billion -- approaching the minimum the bank is required to hold -- according to governor Riad Salame.
In a bid to ease this pressure on reserves, the central bank said on Wednesday it would no longer subsidise fuel imports.
“I will not review the removal of subsidies on fuel unless the use of compulsory reserves is legalised” by a parliamentary vote, Salame told local radio on Saturday.
Crippling shortages of fuel, existing alongside power cuts lasting more than 22 hours per day, have left many businesses without the diesel needed to power generators, and forced some premises to close.