Dollar Exchange Rate Spirals Again
The price of U.S. dollar to the Lebanese pound recorded a new increase on Thursday at the parallel market reaching LBP 2,680 for buying and LBP 2,600 for selling.
According to owners of money exchange houses, the price of the dollar is closely affected by an unstable economic situation in the country, and “uncertainty” on whether Lebanon will pay or default on $1.2 billion Eurobonds maturing on March 9.
On Wednesday, anti-government protesters blocked roads across Lebanon to denounce the financial and economic deterioration and the rise in the dollar exchange rate.
Money changers were on Wednesday selling the dollar for more than LBP 2,550 and buying it for around 2,540.
Money changers in protests-hit Lebanon did not abide by a decision they agreed on in January to cap the dollar exchange rate at 2,000 pounds as part of efforts to curb the local currency's devaluation on the parallel market.
The Lebanese pound is officially pegged to the greenback at a rate of 1,500 to the dollar but the country's sharp economic downturn has sent the currency into a tailspin in foreign exchange offices.
Source: Naharnet
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