Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Lebanon central bank to use forex rate of 15,000 pounds per dollar as of Feb 1

Economic Indicators Nov 21, 2022 01:41PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A money exchange vendor displays Lebanese pound banknotes at his shop in Beirut, Lebanon September 28, 2022. REUTERS/Mohamed Azakir

BEIRUT (Reuters) -Lebanon's central bank will adopt an exchange rate of 15,000 Lebanese pounds per U.S. dollar as of Feb. 1 as part of a process to unify the country's multiple exchange-rate system, Lebanese central bank governor Riad Salameh said on Monday.

The central bank's official rate has been set at 1,507 pounds per U.S. dollar for 25 years but that valuation has become all but defunct since a 2019 financial implosion that has caused the currency to lose more than 95% of its value.

The parallel market exchange rate was hovering at around 39,000 pounds per dollar on Monday.

"We have now entered the process of unifying exchange rates ... the central bank will deal with markets using the price of 15,000 starting form the beginning of February 2023," Salameh said in an interview with U.S.-based Al-Hurra TV.

In addition to official and parallel market exchange rates, authorities have created several others during the crisis, including unfavourable rates applied to withdrawals of Lebanese pounds from hard currency deposits in the frozen banking system.

Salameh said the rate for withdrawals governed by central bank circulars would be brought up to 15,000 pounds as of Feb. 1.

The central bank would then have just two rates, Salameh said: 15,000, and a rate set by the central bank's Sayrafa exchange platform, which sat at around 30,000 pounds per dollar on Monday.

Lebanon's crisis was caused by decades of profligate spending by a state riddled with corruption and waste, together with unsustainable financial policies.

Depositors have paid a big price, and have been mostly unable to access dollar savings or forced to make withdrawals in pounds at unfavourable rates.

Progress has been slow, meanwhile, on reforms that would help finalize a deal with the International Monetary Fund (IMF) to unlock funding to help ease the crisis.

Lebanon central bank to use forex rate of 15,000 pounds per dollar as of Feb 1
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
RaFi BhUiYaN
RaFi BhUiYaN Nov 21, 2022 5:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email