Banque du Leban or the Central Bank of Lebanon (BDL) is the main authority on Forex brokerage matters in Lebanon. The bank was established in 1963, and it is in charge of the monetary policy and issuance of the national currency, the Lebanese Pound. The scope of duties includes regulation of the banking sector, ensuring monetary stability, etc. The government has recently launched a 5-year plan aimed at reducing the country’s debt. One of the main program participants is the Banque du Leban. Besides the many obligations, Forex regulation also falls under the supervision of the Bank. Maybe in Europe or America it is somewhat unusual to put a national bank in charge of Forex dealings, but in the East, it is completely normal. Moreover, France is also one of the countries where the Central Bank is in charge of Forex companies. The BDL grants licenses to banks, money dealers, brokerage companies, funds, etc. The BDL cooperates closely with the government in order to fulfill joint objectives. The Bank also tries to keep the Lebanese Pound (LBP) fixed against the values of the USD (1USD = 1,512 LBP) and further strengthen the currency. The economy of Lebanon is a developing one, and it was significantly affected by the Syrian war. Tourism and banking represent the main growth sectors.
Modes but Solid Forex Market
Like in many other countries around the globe, Forex has become one of the main attractions in Lebanon. The market is pretty much in demand, and many brokerage companies are being established day in and day out. When compared to other countries, the Lebanese Forex market is modest but solid. Forex broker companies work under the watch of the BDL. They have to comply with the strict rules and regulations which refer to consumer protection, transparency, healthy competition, and honesty. This means, among other things, that Forex brokers have to provide sufficient starting capital to cover potential risks. As we can see, rules and regulations are pretty much the same all over the world, and regulatory bodies work on similar principles. The only issue for concern could be the implementation of the rules, as not all countries are as vigilant to enforce particular laws and regulations, especially when it comes to trading business.
Protecting Forex Traders in Lebanon
Regulations issued by the BDL are a aimed primarily at protecting customers involved with various financial services providers or, in this specific case, Forex brokers in Lebanon. Business transparency is necessary to help investors and traders feel safe and to rid them of fear of being exploited by shady operators on the hunt for fast profits. These things are achieved through active and regular control of Lebanese Forex brokers, who are required to send in their financial reports on regular basis. Those who are found not to be in compliance with relevant laws will have to accept any and all sanctions deemed necessary, which includes revoking licenses in the most sever of cases.
Developing Forex Market in Lebanon
As mentioned, current Forex market in Lebanon is a modest one. However, the government and related institutions, like the BDL, strive to develop the market and create better trading and investing conditions. Although these efforts are not strictly limited to Forex brokers in Lebanon, they are certainly encompassed by them. A stable and safe market can only exist if investors feel safe and brokers play by the rules. That’s why BDU licensed Forex brokers are under a lot of scrutiny and required to make their business practices available at a request of the regulator. Safe and satisfied clients invest more, more investments lead to more capital, and more capital leads to overall development in the country.
Trustworthy Forex Brokers
Education as a Key
The BDU understands that educating traders and potential traders is a key to a successful and healthy market. That’s why they do their best to make the information available to them accessible to interested individuals. This, of course, includes BDU regulated Forex brokers. Those looking to trade with a Lebanese brokerage firm should definitely perform their due diligence and make sure they are properly licensed by the BDU, at the very least. During this process, you will also likely find out if a particular broker has had any big issues in the past and if you should perhaps skip on them altogether.
Join Developing & Highly Exciting Lebanese Forex Market
The Middle East in general has seen a rise in the number of traders and broker companies. The Forex industry is becoming very popular with Islamic countries who also want a fair chance to make profit form currency trading. Regarding Lebanon, it is visible that Forex broker companies, even if small in numbers, are devoted to their task and make tremendous efforts to attract traders. These efforts, coupled with the BDU regulation, are a guarantee that you will be able to find at least a couple of decent Forex brokers in Lebanon, if you look hard enough.