Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Global demand for natural gas will grow by 36%

    June 6, 2023

    Huawei Launches F5G Intelligent OptiX Network Solutions for Africa to Help Unleash Green Digital Productivity

    June 6, 2023

    Huawei Network Summit 2023: Huawei Launches All-New Offerings in Seven Major Scenarios to Accelerate Africa’s Digital Development

    June 6, 2023
    Facebook Twitter Instagram
    Egypt News HubEgypt News Hub
    • Automotive
    • Business
    • Entertainment
    • Health
    • Lifestyle
    • Luxury
    • News
    • Sports
    • Technology
    • Travel
    Egypt News HubEgypt News Hub
    Home » Lebanon devalues its currency by 90 percent, market rate is much lower
    Business

    Lebanon devalues its currency by 90 percent, market rate is much lower

    February 1, 2023
    Facebook Twitter Pinterest LinkedIn Reddit WhatsApp Email

    According to central bank governor Riad Salameh, Lebanon will adopt a new official exchange rate of 15,000 pounds per U.S. dollar on Feb. 1. This represents a 90% reduction from the current official rate which has remained unchanged for 25 years. A shift from 1,507 to 15,000 is still far from the parallel market, where the pound was changing hands at around 57,000 per dollar on Tuesday, according to Reuters.

    Lebanon devalues its currency by 90 percent, market rate is much lowerIt is unlikely that the change will affect banks, Salameh said. This will result in a decrease in the equity of the institutions at the center of the country’s 2019 financial crisis. The shift is expected to have no more than a limited impact on the broader economy. This is because it is increasingly dollarized and where the majority of trades are conducted using parallel market rates.

    Since it began to split from the 1,507 rate in 2019, the pound has lost approximately 97% of its value. Salameh stated to Reuters that the part of commercial banks’ equity that is in pounds will decrease once converted into dollars at 15,000 rather than 1,500.”

    There are still several rates available, including the official rate, the central bank’s Sayrafa exchange platform rate, which currently stands at 38,000 pounds per U.S. dollar, and the parallel market rate. Lebanese authorities should deal upfront with an estimated $70 billion in financial sector losses. This is widely believed to be the result of decades of profligate spending, corruption, and mismanagement, according to the IMF.

    It is widely believed that Lebanon can only begin to restore confidence in its financial system and recover from the collapse if an IMF agreement is reached. For ordinary Lebanese, the inability to freely access their dollar savings is one of the most debilitating aspects of the crisis. In Lebanon, capital controls have never been formally implemented, but banks have imposed their own controls since 2019, severely restricting withdrawals in US dollars and Lebanese pounds.

    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email

    Related Posts

    EU’s €1.1 billion bicycle exports highlight shift to sustainable living

    June 3, 2023

    Strengthening UAE-India relations: Top diplomats discuss economic partnership

    June 3, 2023

    Global stocks surge as US debt ceiling agreement brings relief

    May 29, 2023

    Global clean energy investment set to reach $1.7 trillion, overtaking oil production

    May 27, 2023

    European Investment Bank supports circular economy with €3.4 billion lending

    May 27, 2023

    Successful UAE-India partnership stands as a model of bilateral cooperation

    May 27, 2023
    Latest News
    Technology

    Game-changing Macs: Apple launches Mac Studio and Mac Pro with revolutionary Apple silicon

    June 6, 2023

    Apple has announced the highly anticipated launch of the new Mac Studio and Mac Pro,…

    Apple redefines laptop excellence with the thinnest 15-inch MacBook Air

    June 6, 2023

    EU’s €1.1 billion bicycle exports highlight shift to sustainable living

    June 3, 2023

    Strengthening UAE-India relations: Top diplomats discuss economic partnership

    June 3, 2023

    Ayurveda vs science: Decoding the cold water conundrum

    June 2, 2023

    UN urges immediate action to prevent food and aid crises in cyclone-hit Myanmar

    June 2, 2023

    Big tobacco’s big lie: Philip Morris’ smoke and mirrors strategy

    June 1, 2023

    Unveiling the most overlooked early heart attack symptom

    June 1, 2023
    © 2021 Egypt News Hub | All Rights Reserved
    • Home
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.