Finance Minister Ghazi Wazni

BEIRUT (Reuters) – The Lebanese central bank has set an interest rate cap of 4% on dollar bank deposits and a cap of 7.5% on Lebanese pound deposits, according to a circular reported by several major Lebanese news outlets on Thursday. The circular, published by al-Jadeed, LBC and MTV, set a cap of 2% on dollars deposited for a month and a 4% cap on dollars deposited for a year or more. The rates apply on deposits made or renewed from Feb. 12.

The Daily Star —  BEIRUT: The Lebanese pound Thursday morning registered little change on Wednesday’s black market exchange rate against the dollar. Exchange shops were selling the pound for between L.L.2,220 and L.L.2,300 to the dollar, compared to an average of L.L.2,275 Wednesday. President Michel Aoun is chairing a finance meeting Thursday morning with Parliament Speaker Nabih Berri and Prime Minister Hassan Diab to discuss the payment of a $1.2 billion Eurobond payment due in March. Several other officials are attending including Finance Minister Ghazi Wazni, Deputy Prime Minister Defense Minister Zeina Akar Adra, Central Bank Gov. Riad Salameh, and Association of Banks in Lebanon head Salim Sfeir. The exchange rate of the Lebanese pound has been volatile in recent months due to a shortage of dollars in the market. Despite the Syndicate of Exchange Dealers agreeing in January to fix the unofficial buy rate at L.L.2,000 to the dollar, many exchange shops are still buying at above that rate. The syndicate did not fix the sell rate, which is officially pegged at L.L.1,507.5 to the dollar.