(ANSAMed) – BEIRUT, DEC 15 – New worrying negative record for the Lebanese pound, which in a few days lost further value against the US dollar in Lebanon gripped by the worst financial crisis of recent decades and led by a government paralyzed by political stalemate and institutional.
Lebanese media reported this morning that one dollar is now trading at 29 thousand lire and that in the next few days it will most likely reach and, perhaps, exceed 30 thousand.
Just two years ago, a dollar was trading at 1,500 lire.
The further loss, from 25 to 29 thousand lire, occurred within a few days.
In this context, some shops and supermarkets have decided to temporarily close their doors in the last few hours pending a stabilization of the exchange rate between the lira and the dollar.
The collapse of the Lebanese local currency, which has lost more than 94% of its value since the autumn of 2019, is due to a number of causes, first of all the failure of the Lebanese banking system, considered for decades to be among the safest and most stable. of all the world.
According to analysts cited by the Lebanese media this morning, the latter very recent losses of the lira against the dollar were caused by the decision of the Central Bank, taken in agreement with the Association of Lebanese Banks, to raise the bank exchange rate between lira and dollar (no longer at 3,900 lire but to 8,000).
This, analysts add, has encouraged small savers, who have had their heavy currency funds effectively frozen for two years, to speed up the lira settlement process of their dollar accounts. According to the UN, two thirds of the resident population in Lebanon now lives below the poverty line. And at the end of last October, the inflation rate had exceeded 170%. (ANSAMed).
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Source From: Ansa
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