Lebanese Pound Falls to All-Time Low Against USD – Economic Bitcoin News

After months of relative calm, the Lebanese pound has fallen to an all-time low of 35,600 per dollar, a report said. The currency’s latest decline is expected to exacerbate Lebanon’s economic challenges.

sterling depreciation

In a sign that Lebanon’s ongoing economic crisis is worsening, the black market exchange rate of the Lebanese pound against the U.S. dollar has fallen to an all-time low of 35,600, according to reports. According to Al Jazeera, the black market rate of the pound fell from 26,800 to its latest rate in just two weeks. At the time of writing, the official exchange rate for the British pound is 1,510 to the dollar.

The rapid devaluation of the British pound has reportedly exacerbated Lebanon’s already difficult economic situation.Also as stated by Al Jazeera Report, gasoline prices rose 25% before the currency tumbled. The plan to remove subsidies – which in turn will lead to further price increases – is expected to exacerbate the plight of the country’s residents.

While the Lebanese authorities have blamed global inflation for the rise, some experts believe the domestic cause is largely to blame for the deteriorating situation in the country.

One of the experts, Michel Koza, a financial advisor, explained: “When global prices change, Lebanon is hit not once, but twice. This is because we cannot protect the value of the Lebanese pound.”

IMF bailout

While Lebanon was briefly successful in stemming the pound’s slide earlier this year, the country’s limited resources meant its policy of defending the pound was unsustainable, the report said.

Meanwhile, one of the country’s newly elected politicians, Mark Daou, is quoted in the report insisting that Lebanon can only escape its present predicament if it institutes reforms.

“Financial reforms such as capital controls, bank secrecy, judicial independence are fundamental to regaining trust and stabilizing the market,” Daou explained.

The politician added that the country needs to implement reforms as this is the only way it can qualify for a financial bailout from the International Monetary Fund (IMF).

What’s your take on this story? Let us know your thoughts in the comments section below.

Terence Chimwala

Terence Zimwara is an award-winning journalist, author and author from Zimbabwe. He has written extensively on the economic woes of some African countries and how digital currencies can offer Africans an escape route.

Image Source: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for reference only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned herein.

Source link