The Lebanese pound on Tuesday sank to a record low against the US dollar on the parallel or black market amid the country’s ongoing financial crisis, Elnashra news website reported. The exchange rate – 53,700 Lebanese pounds to the dollar – was more than 7% below the previous record low of 50,000 Lebanese pounds to the dollar, which was reached on January 19.
And the collapse of Lebanon’s currency is expected to continue, said Mahassen Moursel, a Beirut-based financial expert. Starting on February 15, banks are to allow depositors to withdraw their dollar deposits at a rate of 15,000 Lebanese pounds to the dollar, instead of the current rate of 8,000 pounds to the dollar.
“The money supply in Lebanese pounds will increase,” she said. “Therefore, the value of the local currency will drop further against the US dollar.”