Lebanese banks raise exchange rate to dollars as crisis worsens
A member of the government's IMF negotiations team also resigned in opposition to the government's handling of the worst financial crisis in decades.
Lebanese banks raised the exchange rate of the Lebanese pound to the dollar today, further contributing to the currency’s fall as the country plunges deeper into a financial crisis.
Banks are now trading the pound at 3,850 to the US dollar, according to Reuters.
The pound has lost more than 75% of its value since anti-government protests started in October, and the depreciation is a major contributor to ongoing demonstrations. Banks instituted withdrawal restrictions at the time, and there are a limited amount of dollars in circulation. The falling rates mean that many Lebanese have had their savings decrease dramatically, all while unemployment and poverty are rising amid the financial and coronavirus crises.
There are multiple exchange rates between Lebanese pounds and dollars in the country at present. Last week, the black market traded more than 6,000 pounds for $1. The official, longstanding rate of about 1,500 pounds to $1 remains, but is now only available for vital imports, according to Reuters. The bank rate is the third rate. Earlier in the month, the black market rate was around 4,000 pounds to the dollar, indicating further depreciation.
