MT services paid out in local currency

Lebanon’s central bank said on Thursday that money transfer services operating outside commercial banks must issue cash in local currency at a “market rate”, according to a central bank circular.
The circular said hard currency received from abroad must also be sold on to a new central bank foreign exchange (FX) unit being set up to trade foreign currency.

The measure comes amid efforts to rein in a parallel FX market that has become the primary source of hard currency, and where the Lebanese pound has lost about half of its value since October after capital inflows dried up and protests erupted.

The circular did not specify the market rate to which that money transfer services should adhere.

Lebanon’s deep financial crisis and hard currency shortage have prompted banks to impose tight controls on withdrawals and transfers, angering Lebanese citizens who have been severed from much of their savings.
Continue reading at: Aljazeera

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