• Home
  • About Us
  • Privacy Policy
  • Terms and Conditions
  • Team
  • Contact
Wednesday, May 14, 2025
FinCurrency
No Result
View All Result
  • Home
  • News
  • Finance
  • Economy
  • Crypto
  • Home
  • News
  • Finance
  • Economy
  • Crypto
No Result
View All Result
FinCurrency
No Result
View All Result

Dollar Falls to Black Market in Lebanon as Foreign Currency Reserves Erode

Lebanon's economy has been in crisis for the past few years due to political instability, high debt levels, and a large influx of refugees from neighboring Syria.

Sergio Gruber by Sergio Gruber
March 19, 2023
in Economy
Reading Time: 3 mins read
A A
0
Impact of Inflation and Financial Sector
0
SHARES
6
VIEWS
FacebookTweetPinShareShare

Lebanon, like Egypt and Pakistan, abandoned a fixed exchange rate in January and devalued its currency by 90% on February 1, resulting in a historic decline in the value of its currency. The Lebanese lira has depreciated by 98% against the US dollar over the past three years, and the dollar has risen to 100,000 Lebanese pounds on the black market.

The Lebanese economy has been facing a significant crisis for the past few years, due to a combination of factors including political instability, high debt levels, and a large influx of refugees from neighboring Syria. To address the crisis, the Lebanese government has implemented a few measures, including freezing dollar deposit accounts in banks and attempting to negotiate a bailout with the International Monetary Fund (IMF). However, progress on these measures has been slow, and the economic situation in Lebanon remains highly uncertain.

Impact of Inflation and Financial Sector

blockdag 70m

In addition, inflation has reached triple digits, making the economic situation in Lebanon more delicate and fragile amid the government’s efforts to deal with the crisis, the popular uprising in 2019 that led to the overthrow of the government, and the chaotic situation caused by the pandemic. The financial sector has been forced to implement extraordinary measures in response to the inflationary environment and the shortage of foreign exchange reserves.

Measures Taken by Government

The government has decided to freeze dollar deposit accounts in banks to prevent a decline in foreign exchange reserves. The use of money-making machines has become widespread, even among small business owners. Citizens have resorted to carrying cash in bags. In February, the Minister of Economy announced that dollar transactions would be allowed in stores from March 1 in an attempt to ensure that goods were purchased at their true prices.

Dollar Falls to Black Market in Lebanon as Foreign Currency Reserves Erode

Continued Decline of the Local Currency

The value of the Lebanese lira continues to decline against the US dollar, reaching a peak. The government or the central bank has not yet commented on the historic decline in the value of the lira. The economic crisis, which began in October 2019, the resignation of the government, the explosion at the Beirut port, and the COVID-19 pandemic have all deeply affected the country’s economy.

Shift to US Dollar in Commerce

To prevent the erosion of foreign exchange reserves in the midst of a crisis that has lasted for approximately 3.5 years, dollar deposit accounts in banks have been frozen. In the country, the value of the local currency has continued to decline over the past three years, with the value of one US dollar trading at 1,500 Lebanese pounds in 2019, and the decline in the value of the local currency has increased in tandem with successive events. While one US dollar traded at 20,000 Lebanese pounds in January 2022, the decline in the value of the local currency continued to accelerate over the past year. On February 28, the Minister of Economy announced that from March 1, all price tags in stores throughout the country would show prices in US dollars rather than in Lebanese pounds, enabling citizens to purchase goods at their true prices.

You may be interested in:
  • How To Create An Automated Market Maker?
  • German Economy Shrank 2 Times More Than Expected
  • Central Bank Digital Currencies: A New Era for Money and Payments?
Tags: dollareconomylebanon
Previous Post

The Prospects of Pulsex: A Price Prediction for 2025

Next Post

Becoming A Mental Coach For Traders: How To Do So?

Sergio Gruber

Sergio Gruber

Financial writer Hello, my name is Sergio Gruber and I am a finance editor with a specialization in blockchain and cryptocurrency. I have a deep understanding of how the financial world is being transformed by these exciting technologies.I received my degree in Finance Editing from Western Washington University, where I learned how to combine my passion for writing and financial analysis. Since then, I have worked with a number of high-profile publications, helping to educate and inform readers about the latest developments in the world of blockchain and cryptocurrency.

Next Post
How should a Mental Coach Behave?

Becoming A Mental Coach For Traders: How To Do So?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Popular News

  • How BlockDAG’s Community-First Strategy Raised $68.3M in Presale; Cardano To Roll out New Update & Solana Price Prediction Bullish

    How BlockDAG’s Community-First Strategy Raised $68.3M in Presale; Cardano To Roll out New Update & Solana Price Prediction Bullish

    0 shares
    Share 0 Tweet 0
  • Top 10 Altcoins Under $1 to Invest in 2025

    0 shares
    Share 0 Tweet 0
  • Alex Mashinsky Net Worth: From Tech Pioneer to Legal Battle

    0 shares
    Share 0 Tweet 0
  • How to Earn Passive Income? Embrace the Future of Passive Income and Earn 20% Instant USDT with Caged Beasts Coin

    0 shares
    Share 0 Tweet 0
  • Vanguard Routing Number: How to Find and Use It

    0 shares
    Share 0 Tweet 0

Recent News

$12k Void Opens Up Possibility Of Crash Toward $75,000

$12k Void Opens Up Possibility Of Crash Toward $75,000

January 11, 2025
Phishing, Fake Mining Scams, and $474K Loss in One Week

Phishing, Fake Mining Scams, and $474K Loss in One Week

January 11, 2025
3 kleine crypto’s met potentie

3 kleine crypto’s met potentie

January 11, 2025
Unbelievable 1000x Return in Just 12 Hours!

Crypto Whale Bags $4.9M in Profit with Solana’s AI Meme Coin

January 11, 2025
FinCurrency Logo White Mode Retina Mobile

FinCurrency is a user-friendly platform that stands out as a unique source where our strong team of experienced and academically qualified writers, who are experts in their fields, analyze current issues and global affairs related to the finance and crypto world in an enjoyable and non-technical approach.

$12k Void Opens Up Possibility Of Crash Toward $75,000

$12k Void Opens Up Possibility Of Crash Toward $75,000

January 11, 2025
Phishing, Fake Mining Scams, and $474K Loss in One Week

Phishing, Fake Mining Scams, and $474K Loss in One Week

January 11, 2025
3 kleine crypto’s met potentie

3 kleine crypto’s met potentie

January 11, 2025
Unbelievable 1000x Return in Just 12 Hours!

Crypto Whale Bags $4.9M in Profit with Solana’s AI Meme Coin

January 11, 2025

WARNING:

The content on this site should not be considered investment advice and we are not authorised to provide investment advice. Nothing on this website is an endorsement or recommendation of a particular trading strategy or investment decision. The information on this website is general in nature so you must consider the information in light of your objectives, financial situation and needs.
Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence or obtain advice where necessary. This website is free for you to use but we may receive a commission from the companies we feature on this site.

  • Home
  • About Us
  • Privacy Policy
  • Terms and Conditions
  • Team
  • Contact

© 2024 FinCurrency - Global News

No Result
View All Result
  • Home
  • News
  • Economy
  • Finance
  • Crypto
  • Technology
  • Terms and Conditions
  • Contact

© 2024 FinCurrency - Global News

Banner 1
Banner 2
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Terms and Conditions.