Lebanese bank official arrested for alleged currency manipulation
Lebanon's central bank denied the allegations; the Lebanese pound's value has decreased significantly amid the ongoing economic crisis.
An official at Lebanon’s central bank has been arrested on currency manipulation charges. The Lebanese pound’s value has plummeted during the coronavirus and economic crises in the country.
A Lebanese state prosecutor ordered the central bank’s director of cash operations, Mazen Hamdan, arrested Thursday for alleged currency manipulation. Hamdan allegedly bought US dollars from currency exchanges and weakened the pound’s value on the black market, Bloomberg reported.
The central bank denied the allegations and released its foreign currency transactions today.
The Lebanese pound used to have a stable exchange rate vis-a-vis the US dollar. For years, $1 was pegged to roughly 1,500 Lebanese pounds. However, there are now multiple competing exchange rates in the country: one on the black market, one recognized by the government and a third one being used by banks.
