April 13, 2024

Brighton Journal

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Lebanon devalued its currency by 90% against the dollar

Lebanon devalued its currency by 90% against the dollar
The Lebanese pound falls against the dollar. The central bank set the exchange rate at 15,000 pounds to the dollar, but on the black market it is exchanged at an average of 60,000.

The Central Bank of Lebanon A strong hike was used this Wednesday Official exchange rate In the Lebanese pound, it goes from 1,507.5 units per dollar to 15,000 US bills, the first increase announced by the issuing company in more than three decades.

Last week, the central bank issued a series of circulars saying that from February 1 the country’s banks will start using an exchange rate of 15,000 pounds to the dollar for their transactions, an even lower value. Black market.

A central bank source, who did not want to be named, explained EFE Starting this Wednesday, companies are operating exclusively on the basis of change 15,000 units per dollar He added that since the onset of the economic crisis in 2019, the series of intermediate values ​​reported for various applications in the sector has disappeared.

“This confirms that there is no such thing as 1,500, 8,000 or 12,000, they have all become 15,000,” he said.

A man counts US dollar bills at a change shop in Beirut, Lebanon
A man counts US dollar bills at a change shop in Beirut, Lebanon

Although due to luck “Game Stadium” Experienced in the country since the outbreak of the crisis, some values ​​have been established slightly higher than the official value for some bank transactions, the official exchange rate has remained unchanged for more than three decades.

However, the source noted that for the rest of the sectors, the government needs to clarify when it will adopt the new value and which companies will be governed by it.

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Currently, the exchange rate on the black market determines the price of everything in the Cedar Land and the official one has very little use, due to the huge gap created between the two since the crisis began in 2019, even the two.

this morning, Lebanese pound Exchanges traded at 60,000 units per dollar on the black market, after breaching the 63,000 barrier last week, the latest low amid a three-year streak of losses.

The Governor of the Central Bank, Riyad SalamehA new exchange rate was expected late last year to come into effect on February 1, 2023, but Lebanese officials said it would apply first to customs duties and then to other areas. details.

The sharp hike, which began to take effect this Wednesday, represents a devaluation of the Lebanese pound of almost 90% in official terms.

(with information from EFE)

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