Riad Salameh is gone and so is his shady exchange platform “Sayrafa”. Instead, the Council of Ministers has agreed to adopt a new Bloomberg-operated platform for dollar trading, which is expected to reflect the actual and free exchange rate, limit the cash economy and replace the numerous parallel market exchange rates.
This is in theory of course, but the truth is that while this platform may provide more transparency, the absence of reforms and the ever-increasing demand of US dollars will cause the Lira to skyrocket in few weeks time only. In addition to that, BDL doesn’t have any reserves to control the LIRA hike, nor the authority or political support to control parallel markets.
In other words, the decision to adopt Bloomberg is a hasty and rushed decision probably taken to please the IMF prior to their visit to Lebanon. As for its impact on the LIRA, expect mass hysteria and panic soon over fluctuating LIRA rates.