The Lebanese pound on Tuesday exceeded the record threshold of 100,000 per dollar in the parallel market, the exchange houses of this country reported on Tuesday, plunged into a very serious economic and financial crisis. The official exchange rate was set in February at 15,000 Lebanese pounds (LL) per US dollar, compared to 1,507 at the start of the unprecedented crisis that unleashed in 2019.
This new official rate of LL 15,000 to one dollar is still more than six times lower than the real value of the pound on the parallel market, where the greenback is now trading at LL 100,000, according to exchange houses. Banks on Tuesday resumed an indefinite strike that began in early February to protest what the Association of Lebanese Banks called “arbitrary” legal action against creditors.
severe shortage
Lebanon is experiencing one of the worst economic crises in the world since 1850 according to the World Bank, marked by unprecedented impoverishment of the population and severe shortages. In early March, Lebanese supermarkets began displaying prices in US dollars, as decided by the authorities given the rapid depreciation of the national currency. Previously, supermarkets stopped quoting food prices in pounds due to the rapid debasement of the Lebanese currency.
In a country that imports 90% of its goods, restaurants and stores began setting their prices in dollars several months ago. Food prices have increased dramatically since 2019. According to the World Bank, the world’s highest inflation rate reached 332% between January 2021 and July 2022.
The political crisis is aggravating the situation and the country has been deprived of a president since November 1. The divided parliament fails to agree on a new head of state.
Source: BFM TV
