| 23 May 2024, Thursday |

Lebanon’s currency plummets reaching an all-time low of 32,400 pounds to US dollar

On Monday morning, the black market dollar registered additional hike, ranging between 32,200 Lebanese pounds for purchase and 32,400 LBP for sale.

It is noteworthy that the Central Statistics Administration announced last December that the inflation rate between December 2020 and November 2021 increased by 178%.

The Lebanese pound has been rapidly declining against the dollar since 2019, coinciding with a major liquidity crisis and banks refusing to provide depositors with money in dollars, despite the fact that the official exchange rate remains fixed at 1,507 pounds.

The Lebanese pound has lost around 90% of its value over the last two years, pushing three-quarters of the population into poverty.

A month ago, Lebanon’s Central Bank had set a new rate of 8,000 Lebanese pounds to the US dollar for withdrawals from bank deposits denominated in dollars but which can now only be accessed in the local currency.

Economists warned of the repercussions of Lebanon’s crisis with the Gulf states on the Lebanese economic reality, pointing out that the productive sectors that were an input for the dollar would be affected, in addition to the closure of Saudi institutions in Lebanon.

Experts expected more pressure, especially on the dollar’s exchange rate, the rise in unemployment and economic stagnation.

  • Sawt Beirut International