Amid the political, economic, financial, and monetary crisis which hit the country since mid-2019, the Lebanese pound fell against the dollar on the black market to high and unprecedented levels, trading for around 15,00 LBP.
This situation has took back elderly’s memories to the past, and more research has been done about the development of dollar against Lebanese pound in the last decades.
According to the “International Information” the dollar has passed in the last 6 decades within eight stages.
The first stage was between 1960 and 1981. The Lebanese pound has witnessed in this era strength and stability in price. In 1960, the Lebanese pound was 3.08 LBP against one dollar, and it rose to 2.30 LBP in 1975, and then dropped to 4.3 LBP in 1981.
The second phase was between 1982 and 1985, were the Lebanese pound started witnessing a little change trading for around 4.7 LBP in 1982, 6.51 LBP in 1984. It tumbled to 18.1 LBP in 1985.
The third phase was between 1986 and 1992. During this period the Lebanese pounds started tumbling against the dollar, as it fell down from 87 LBP at the end of 1986 to 2,825 – 3,000 LBP in September 1992.
The fourth phase was distinguished by the increase in the value of Lebanese pound against dollar, as it dropped from 2,825 LBP to 1,508 LBP.
The fifth stage was between the years 1999 and 2019, and during this long period the Lebanese pound was pegged to the dollar at 1,507.5, and that rate was fixed by the central bank.
The sixth phase was between October 2019 and December 2019. During this period the Lebanese pound started falling down with exchange rate of 2,000 LBP.
The seventh phase was between January 2020 and January 2021, which witnessed the huge fall down, as the Lebanese pound lost more than 85 percent of its value dropping from 2,000 LBP to 8,500 LBP.
The eighth phase was between January and March 2021, were the Lebanese pound continued to fall against the dollar reaching an unprecedented exchange rate of 15,000 LBP, which led to a total collapse for the country’s economy.
Lebanese citizens are eager about their future and whether the Lebanese pound will regain its value and rise back to 1,500 LBP or even 5,000 LBP. The image will remain blur because there is no logic economic or even political answers so far for these questions