Report: Lebanese Pound Exchange Rate Against Dollar Plunges to All-Time Low

Report: Lebanese Pound Exchange Rate Against Dollar Plunges to All-Time Low

After relative calm for a few months, the Lebanese pound has plunged to an all-time low of 35,600 per dollar, a report has said. The currency’s latest slide is expected to worsen Lebanon’s economic challenges. Pound Depreciation

In a sign that Lebanon’s ongoing economic crisis is worsening, the black market exchange rate of the Lebanese pound is reported to have plunged to an all-time low of 35,600 against the dollar. According to an Al Jazeera report, it took just two weeks for the pound’s black market exchange rate to drop from 26,800 to the latest rate. At the time of writing, the pound’s official exchange rate was 1,510 for every dollar.

The pound’s reported quickfire depreciation has worsened Lebanon’s already difficult economic situation. Also as noted in an Al Jazeera report, the currency’s plunge was preceded by a 25% increase in petrol prices. Plans to scrap subsidies — which in turn can lead to further price increases — are expected to worsen the plight of the country’s residents.

While authorities in Lebanon have blamed the rising global inflation, some experts believe domestic reasons are largely to blame for the country’s deteriorating situation.

One of the experts, financial adviser Michel Kozah, explained: “When global prices change, Lebanon is not hit once, but twice. It’s because we cannot protect the value of the Lebanese pound.”

IMF Bailout

While Lebanon was briefly successful in halting the pound’s slide earlier in the year, the country’s limited resources meant its policy of defending the pound could not be sustained, the report said.

Meanwhile, one of the country’s newly elected politicians, Mark Daou, is quoted in the report insisting that Lebanon can only escape its present predicament if it institutes reforms.

“Financial reforms like capital controls, banking secrecy, judicial independence and a few others are fundamental for regaining trust and stabilising the markets,” Daou explained.

The politician added that the country needed to implement the reforms as this was the only way it can qualify for an International Monetary Fund (IMF) financial bailout. Tags in this story Black market exchange rate, global inflation, imf bailout, lebanese pound, lebanon currency crash, lebanon financial crisis, Mark Daou, Michel Kozah

What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. The Fed"s Christopher Waller Wants 50 bps Rate Hikes Until Inflation Subsides, US Savings Data Plummets ECONOMICS | 10 hours ago "Big Short" Investor Michael Burry Warns of Looming Consumer Recession, More Earnings Trouble ECONOMICS | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleUndervalued Metaverse Project Mars4 Is Preparing for New Releases Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItIran to Increase Penalties for Unauthorized Cryptocurrency Mining

Iran has drafted new rules to increase penalties for illegal cryptocurrency mining in the country, including additional fines and imprisonment. "Any use of subsidized electricity intended for households, industrial, agricultural, and commercial subscribers for mining cryptocurrency is prohibited." New Penalties ... read more.Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin