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Lebanon’s central bank to inject dollars as currency crashes

The Lebanese pound trades at roughly 6,000 to the US dollar on the black market; Lebanese officials take action to try to get the parallel market under 4,000 to the dollar.

A man wearing a face mask takes Lebanese pound banknotes at a currency exchange shop in Beirut, Lebanon April 24, 2020. REUTERS/Mohamed Azakir - RC20BG9T3QWR
A man wearing a face mask takes Lebanese pound banknotes at a currency exchange shop in Beirut, Lebanon, April 24, 2020. — REUTERS/Mohamed Azakir

The central bank in Lebanon will inject fresh dollars into the market beginning next week, President Michel Aoun said today after protests reignited over deteriorating living conditions and a collapsing currency.   

After an emergency Cabinet meeting, Aoun announced plans for "feeding dollars into the market” to stabilize the fast-depreciating currency. 

The Lebanese pound was reported today to have fallen at one point to roughly 6,000 to the US dollar on the black market, compared with last week’s average of 4,100. Since 1997, the Lebanese pound has remained officially pegged at 1,507 to the dollar. 

After Aoun’s announcement, Finance Minister Ghazi Wazni said the currency had gained ground and was expected to keep doing so, Reuters reported, citing broadcaster LBCI. The government plans for money changers to sell pounds at 3,940 to the dollar, The Associated Press reported.

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