Central Bank mandates
dollar conversion at LL3,200

Circular applies to money changers

The Central Bank (BDL) has issued a circular requiring all money changers not to exceed the exchange rate of LL3,200 to the dollar.

By Monday noon,foreign exchange counters did not start implementing the new circular with the dollar price reaching a high of LL4,000. Meanwhile, BDL’s special unit for foreign exchange set the dollar rate for money transfer companies at LL3,800.

The circular has instructed all foreign exchange firms not to engage in any operation that exceed that amount or any subsequent amendments to the exchange rate by BDL’s newly-established special unit for foreign exchange trading. The Central Bank said earlier this month that it has set up this special unit and that it will also create an electronic platform to publish the trading prices of foreign currencies.

BDL said in the new circular that its decision will remain effective for six months. The decision aims to face the unjustified surge in the price of dollar in recent days and to ensure the stability of the exchange value of the lira in order to protect the purchasing power of citizens, especially low-income people, according to the new circular.

Last March, the Central Bank instructed money changers to buy foreign currencies from their clients at a price that does not exceed 30 percent of the rate it sets for its dealings with the banks.