The Lebanese spectrum of judicial and security prosecutions against currency traders have largely expanded in the past week, with reports saying around 60 changers are accused of manipulating the price of the dollar.
Last Thursday, Lebanon’s financial prosecutor Judge Ali Ibrahim arrested Mahmoud Murad, head of the Syndicate of Money Changers and his brother, Yehya, on charges of manipulating the price of the dollar for financial gain and trading money illegally.
The two men were later transferred to the first investigative judge for questioning.
The case expanded in the last hours after the summoning of Michel Mecattaf, a shareholder in a Lebanese company that ships banknotes from abroad to Lebanon.
Mecattaf was questioned over two cases related to the dollar’s exchange rate. He first appeared in front of the Beirut judiciary section and then in front of the Southern Beirut Suburbs (Dahiyeh) section on suspects of having a business relation with Murad.
After being questioned, Mecattaf was released on bail.
Informed sources told Asharq Al-Awsat the issue “became extremely complex and it requires speedy steps to contain the dollar slip in the black market and its repercussion on the insane increase of the prices of meat and food products.”
The source said the Judiciary believes that Murad and his brother are mainly responsible about this slip.
Last week, the price of the US dollar on the exchange market in Lebanon has touched 4,300 Lebanese pounds (LBP), an unprecedented figure since the end of the civil war, nearly 30 years ago.
Since last October, when commercial banks have gradually reduced the amount of dollars customers can withdraw, the Lebanese relied on currency traders to secure the necessary liquidity in dollars.
There are only 305 exchange offices affiliated with the syndicate, while between 200 and 300 others are working without a license.
The judicial sources told Asharq Al-Awsat that the arrest of currency traders relies on investigations proving their involvement in manipulating the price of the dollar.
They said several traders were released after signing a pledge for respecting the Central Bank's circulars to set the exchange rate to 3,200 pounds for $1.
