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[THREAD] What is the haircut on dollars stuck in the Lebanese banking system (#Lollars)?
Well, it depends on how and when you look at it.
#Lebanon #LBP #dollar
Well, it depends on how and when you look at it.
#Lebanon #LBP #dollar
2. Three ways to look at it:
- Withdrawal of USD in LBP at the prevailing rate (initially 1,507.5, now 3,900 LBP/USD) & exchange LBP for USD at parallel/black market rate
- Sale of a USD bank cheque for cash USD at a discount
- Solidere share price as a proxy (price⬆️=haircut⬆️)
- Withdrawal of USD in LBP at the prevailing rate (initially 1,507.5, now 3,900 LBP/USD) & exchange LBP for USD at parallel/black market rate
- Sale of a USD bank cheque for cash USD at a discount
- Solidere share price as a proxy (price⬆️=haircut⬆️)
3. What do these methods tell us? As of today 9 October 2020:
- Withdrawal at 3,900 LBP/USD: 56% haircut
- Bank cheque: 68% haircut
- Solidere shares: 65% haircut
- Withdrawal at 3,900 LBP/USD: 56% haircut
- Bank cheque: 68% haircut
- Solidere shares: 65% haircut
I started recently looking at the saving plans with the insurance firms in Lebanon and where the money has been invested. Few comments:
1- the client does not have a clue where the money is invested. When you ask you do not receive a clear answer. No transparency. No reporting. No relevant benchmark for dividends payments.
2- fees are not clear nor disclosed to the client.
& this is a case study from Allianz SNA
2- fees are not clear nor disclosed to the client.
& this is a case study from Allianz SNA
In this example the 5% dividends payment in a saving policy does not have a reference / benchmark not fees disclosed. The minimum in the policy is 4%.
When asked on the phone the client was told the money was invested in Eurobonds and deposit with Lebanese banks
When asked on the phone the client was told the money was invested in Eurobonds and deposit with Lebanese banks
[THREAD] #ThinkLikeRiad: Salameh's Salami Tactics
Faced with a legacy-defining moment, @riadsaleme is in for the fight of his life.
Faced with a legacy-defining moment, @riadsaleme is in for the fight of his life.
@riadsaleme Consistent with his calm and deliberate character, he has opted for an incrementalist, divide-and-conquer approach to deal with his main enemy: an acute dollar shortage.
@riadsaleme With the main objective of buying the maximum amount of time, he is addressing different facets of the problem separately and sequentially…
