The Lebanese pound continued its catastrophic depreciation on Saturday in the parallel market; trading at more than 30;000 LL against the dollar; a new and sad record in a country in full crisis for two years.
Depending on the platform lirarate.org; the dollar bought at 30;250 LL and sold at 30;200 LL at 4:10 p.m.; while its official price remains fixed at 1507.5 pounds. This rate is described as “unrealistic” by the governor of the Bank of Lebanon; Riad Salamé; who has not yet taken measures to stop the financial collapse of the country.
Faced with this further deterioration in the financial situation; protesters observed a sit-in in front of the central bank headquarters in Beirut. “We wonder how the ruling class can let people be humiliated to earn a living; buy drugs; be hospitalized and withdraw the money they have earned from the banks;” said one protester; according tojournaltimements reported by local channel LBCI. -Isn’t it the responsibility of governments to work to protect citizens? What have successive governments been doing since the 1990s besides stealing state treasury and property and seizing people’s deposits? –He said.
In the first week of 2022; the national currency broke three depreciation records. On January 4; it was trading at 30;100 pounds and at 29;250 pounds the day before. Since the beginning of the serious socio-economic and political crisis in Lebanon in 2019; the pound has lost 95% of its value; pushing more than 74% of the population below the poverty line. Various international actors are conditioning the release of their aid to Lebanon on the implementation of serious reforms. In a week; an official meeting is scheduled between Lebanese negotiators and a delegation from the International Monetary Fund; which advocates the establishment of a floating exchange rate.
The fixation of the “official exchange rate” at 1;507.5 pounds per dollar dates from December 1997. This decision marked the end of a floating exchange rate policy that had witnessed the collapse; even more spectacular than the current one; of the pound during the civil war from 1975 to 1990. Although one of its main advantages is to stabilize the exchange rate to encourage the entry of foreign capital; this anchoring can also be very costly in the economy; since the country in question is obliged to maintain an adequate level of foreign exchange reserves so as not to allow your currency to derail. A scenario that has finallyjournaltimee true in Lebanon with the economic; financial and monetary collapse that began in the second half of 2019.
The Lebanese pound continued its catastrophic depreciation on Saturday in the parallel market; trading at more than 30;000 LL against the dollar; a new and sad record in a country in the middle of a crisis for two years; it was bought at 30;250 LL and sold for 30;200 LL at 4:10 p.m.; while its official rate remains fixed at 1507.5 pounds. Is…
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