| 29 May 2024, Wednesday |

Lebanon’s pound drops to 14,000 against U.S. dollar

The Lebanese pound continued to tumble on Monday with exchange rates of 13,800/14,000 pounds against the U.S. dollar on the black market.

Earlier in the day, the pound was traded at 11,400/11,600 to the dollar but it has begun sliding now following a meeting between President Michel Aoun and Prime Minister-Designate Saad Hariri who failed to reach any breakthrough over the formation of a new government.

Meanwhile, numerous shops and supermarkets across the country have locked their doors as they are unable to keep pace with the fluctuating prices of commodities in light of the spiraling USD exchange rate.

The new slump in the pound, which had hit 10,000 per one dollar two weeks ago, broke a semi-stable margin of around 8,000/8,500 LBP against USD, prompting citizens to block roads with burning tires, venting their anger at the deteriorating economic situation.

The pound remains pegged to the dollar at 1,507.5, but that rate fixed by the central bank remains available only for imports of wheat, medicine and fuel.

Lebanese banks had raised the exchange rate from 1,507.5 to 3,850 pounds per dollar for withdrawals from U.S. dollar accounts as a liquidity crunch erodes the currency’s value.

Crushed under a mountain of debt, Lebanon is grappling with a financial crisis that has wiped out jobs, raised warnings of growing hunger and locked people out of their bank deposits.