According to the Kuwaiti newspaper Al Rai, the Ministry of Finance intends in coordination with the Central Bank, to amend the customs dollar rate and link it to Sayrafa’s rate starting early next month.

It was noted that this decision was met with very little objection, just like when it was increased from LBP 45 thousand to LBP 60 thousand.

It is highly unlikely that the Ministry of Finance will consider the Economic Organizations’ objection because its treasury is obviously suffering from a lack of resources.

The Economic Organizations have been objecting the increase in the customs dollar rate to meet Sayrafa’s rate in such a short period to be able to study the effects of the first increase and then reconsider increasing it again in less than 15 days.

The organizations had warned against increasing the customs dollar rate in order to provide the treasury with additional income because such a step will have serious social and livelihood repercussions, as well as unforeseen dire consequences on the economy.

This measure will widen the comprehensive dollarization’s circle of the rapidly growing income systems in both the public and private sectors.