Big Drop in Dollar's Black Market Rate Linked to Several Factors

Lebanese political sources have expressed optimism over the possibility of positive financial and economic developments, after the dollar exchange rate dropped dramatically on the black market in recent days.

The upbeat expectations come after the dollar slumped below the LBP 6,000 mark after having reached around LBP 10,000.

The sources told al-Joumhouria newspaper in remarks published Monday that the major drop can be attributed to a host of local, regional and international factors.

They cited the resumption of Lebanon’s talks with the International Monetary Fund, the latest U.S. stances that expressed readiness to help Lebanon, French Foreign Minister Jean-Yves Le Drian’s upcoming visit to the country, and expectations that Gulf nations topped by Kuwait and Qatar will offer assistance to Lebanon.

Official sources meanwhile told al-Joumhouria that a part of the dollar exchange rate’s surge in recent weeks had been aimed at “embarrassing the government and turning the people against it in an attempt to topple it.”

The sources also said that technical factors such as the subsidization of 300 essential foodstuffs items and the return of some dollar-carrying expats have contributed to the drop in the dollar exchange rate on the black market.