Lebanese Pound Exchange Rate Against Dollar Plunges to All-Time Low – The Lebanese pound has dropped to an all-time low of 35,600 per dollar, according to a report, after a period of relative calm. The currency’s recent depreciation is projected to worsen Lebanon’s economic problems.
The black market exchange rate of the Lebanese pound against the dollar has reportedly dropped to an all-time low of 35,600, indicating that Lebanon’s protracted economic crisis is worsening.
According to an Al Jazeera report, the pound’s black market exchange rate dropped from 26,800 to the current amount in just two weeks. The official exchange rate for the pound was 1,510 for every dollar at the time of writing.
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Lebanon’s already difficult economic crisis has been worsened by the pound’s reported rapid depreciation. According to an Al Jazeera report, the currency’s depreciation was preceded by a 25% spike in petrol prices. Plans to eliminate subsidies, which could lead to more price hikes, are expected to worsen the country’s residents’ situation.
While Lebanon’s government has blamed rising global inflation, other experts say the country’s deteriorating status is mostly due to domestic reasons.
“When global prices change, Lebanon is not affected once, but twice,” said one of the experts, financial adviser Michel Kozah. It’s because we can’t protect the Lebanese pound’s value.”
While Lebanon was initially successful in halting the pound’s slide earlier this year, the country’s limited resources meant that the pound’s defense policy could not be sustained, according to the report.
Meanwhile, Mark Daou, one of Lebanon’s newly elected politicians, is described in the report as saying that the country can only get out of its current crisis if it implements reforms.
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“Financial reforms such as capital controls, banking secrecy, judicial independence, and a few others are crucial for restoring trust and stabilizing markets,” Daou said.
The politician went on to say that the government needed to implement the reforms in order to qualify for a financial bailout from the International Monetary Fund (IMF).
