Lebanon arrests several over currency manipulation

Lebanon Security forces have arrested a number of notorious money changers who are accused of currency manipulation in a wave of raids across Lebanon.

According to TV networks, several were arrested including Ali Nimr al-Khalil, his relative Issa Kanj and others who have recently emerged as the main currency manipulators in the country.

According to MTV station , the raids and arrests were reportedly carried out last evening by the Information Branch of the Internal Security Forces, and the raids continued until dawn

More arrests have reportedly been made in connection to this issue in Sidon , Zahrani and Sarafand in south Lebanon , although it is still difficult to determine the exact number and names of those arrested as the situation is still developing. The Lebanese Security force has taken measures to address the currency crisis , manipulation and corruption . However, the root causes of the problem , still need to be addressed in order for a sustainable solution to be found.

This comes days after State Prosecutor Judge Ghassan Oueidat , based on a request by the Central Bank chief , sent a memo to Financial Prosecutor Judge Ali Ibrahim asking him to “immediately” order the arrest of the money changers and manipulators who are contributing to “the collapse of the Lebanese pound ”

The Lebanese pound, which had already lost more than 97 percent of its value since 2019, plummeted to new lows against the dollar in recent days, trading for nearly LBP 66,000 against the dollar on the black market.

Following the arrests the Lebanese Lira rate was just under 60,000 to the dollar

The manipulation of the Lebanese currency refers to the deliberate and unlawful interference with the exchange rate of the Lebanese pound. This has been a major issue in the country as it has led to significant devaluation of the currency and a shortage of US dollars. It has also led to very high inflation

Lebanon ranked third in the world and first in the Arab world in the list of countries most affected by food price inflation, after the country recorded a 143% rise in food prices by the end of January of this year.

According to the World Bank’s Food Safety report, January 30 saw the highest rate of food inflation in Zimbabwe at 285 percent, followed by Venezuela with food price inflation at 158 percent and Lebanon at 143 percent.