The central bank on Thursday hiked the dollar exchange rate for bank withdrawals from LBP 3,900 to LBP 8,000 while setting a $3,000 monthly cap per account.
In a statement, the bank said its measure comes ahead of “devising an integrated and comprehensive governmental pan that is based on the economic and reformist principles and the requirements of the International Monetary Fund.”
The bank also called for a governmental plan that “allows for unifying exchange rates, protecting social and economic stability, and limiting the losses of depositors.”
BDL also noted that a $3,000 monthly cap will be imposed on every account in order to limit the growth of money supply (M1) in the market and its impact on inflation.
The Lebanese pound, pegged to the dollar for 30 years at 1,507, has been in a free fall since late 2019. It is now trading at nearly 25,300 to the dollar at the black market.
The financial crisis has driven more than half of the population into poverty, caused the local currency to lose more than 90% of its value, and prompted banks to lock deposits through informal capital controls, eroding trust in a once-thriving banking sector.
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