Lebanese pound hits new low as political deadlock continues

The value of the Lebanese pound has hit a new low, now trading at 63,000 LL to the dollar, as the country’s political deadlock continues continues over the election of a new president

The cash-strapped Lebanon’s currency, once valued at about 1,500 to the dollar, has been tanking since late 2019 and has since lost over 97% of its value. The financial crisis has plunged 85% of the population into poverty, with millions struggling to cope with some of the world’s sharpest inflation. Experts blame the country’s entrenched ruling elites for decades of corruption and financial mismanagement.

The pound exchange rate in the morning was 60,000 LL to the US dollar but hit 63,200 in the evening .

Lebanese pound’s worsening deterioration is due to the absence of appropriate measures to stabilize the currency early on in the crisis, including formal capital controls, and a plan approved by the International Monetary Fund. 

Lebanese authorities in April 2022 reached a tentative agreement with the IMF for a recovery plan conditional on a host of economic reforms and anti-corruption measures. However, the international organization has been critical of Lebanon’s sluggish efforts to meet these demands. 

Meanwhile, Lebanon’s cash-strapped banks continue to impose strict limits on withdrawals of foreign currency, imposed in October 2019, tying up the savings of millions of people.  As the economy continues to tank without any reforms, some depositors have resorted to storming bank branches and taking their trapped savings by force.

Agencies