by arabnews.com — Najia Houssari — BEIRUT: Lebanon’s public sector and legal system are under growing strain amid widening strike action over the plunging value of salaries in the crisis-hit country. Hundreds of judges continued their strike on Thursday in protest at having their salaries based on exchange rate of 1,507 Lebanese pounds to the dollar. Civil servants have also decided to go on strike again for the same reason, despite being granted monthly aid. Meanwhile, Lebanese university professors are continuing their open-ended strike, while students wait for work to resume so they can take last year’s final exams. Lebanon took preliminary steps to raise the customs dollar rate from 1,507 Lebanese pounds — the rate adopted before the economic crisis hit three years ago — to 20,000 pounds. The move created confusion in markets, adding to the chaos they were already facing.
The customs dollar is the price for calculating the customs value of imports, and is paid in Lebanese pounds. On Thursday, caretaker Prime Minister Najib Mikati sent a letter to Finance Minister Youssef Khalil demanding the customs dollar rate of 20,000 pounds be adopted. Khalil told an expanded ministerial consultative meeting about the move. The ministerial committee enjoys exceptional powers that allow it to adjust the customs dollar rate without the need for Cabinet approval. Amin Salam, the caretaker economy minister, told a press conference on Thursday that the preliminary decision will be the subject of discussions between the finance minister and the central bank governor. Salam said that the impact of the new customs dollar rate on prices of goods would be “insignificant,” adding that the current rate was no longer fair. “We want to adjust the wages and salaries of civil servants,” he said. Salam also voiced fears that traders might store goods to be sold later under the new rate. “We are waiting for traders to provide us with the lists of goods they purchased previously,” the minister said.