Culling the small fish

As you walk into Hissam Exchange in Hamra the first thing you see is the frame on the wall. Encased behind the glass is a certificate declaring that the business is permitted to trade currencies by the Lebanese government. The family company has been operating in Beirut for nearly a decade, but the room is still barely big enough for four people — working on such a small scale there is little excess. Yet Hissam’s family business may soon be squeezed out of existence. Under new plans to be introduced by Banque du Liban (BDL), Lebanon’s central bank, even the smallest money changers (classified as Category B) will have to hold at least LL500 million ($330,000) in capital to operate, up from the current LL100 million ($66,000). Larger ones deemed Category A will have to hold LL750 million ($500,000) in capital to continue to operate, up from LL250 million ($166,000).