The price of the dollar in Lebanon today, Wednesday, October 7, 2020

The average price of the dollar against the Lebanese pound rose on Wednesday in the parallel (black) market, amid tight supply and growth in demand, while the price stabilized in banks.

Banks in Lebanon have faced a crisis since last year after political turmoil, as remittances from expatriates fell and foreign exchange liquidity declined, prompting the government to scramble to finance a mountain of debt.

Black market

The average price of the dollar on the Lebanese black market rose to 8,750 pounds to buy and 9 thousand pounds to sell for one dollar, and the price usually varies according to regions and demand, while the price has stabilized in the banks and the foreign exchange market.

The Lebanese banking system has been paralyzed since last year due to a liquidity crisis, which caused the inability of the country to pay its huge debts.

The Lebanese pound collapsed as banks imposed severe restrictions on withdrawals from dollar-denominated bank accounts, blocked transfers and slashed spending limits on cards abroad to a level that in some cases reached $ 15 per month.

Unions refuse

Trade unions in the land transport sector and the General Workers’ Union of Lebanon refused to lift support for basic products and fuel in a decision that was initiated between the government and the Bank of Lebanon.

The unions warned that this step, which would sharply increase prices, would be the spark to ignite the country, and announced a popular move, which will be scheduled for later.

In Lebanon, meetings are being held between officials and the Bank of Lebanon to discuss how to lift the subsidy and the mechanism that will be adopted to compensate for it, following an unprecedented drop in foreign exchange reserves.

Lebanese caution

The data indicates a decline in available reserves at the Lebanon’s Central Bank, which is currently used to support major imports such as wheat, fuel and medicines.

The Beirut explosion on August 4 exacerbated the economic crisis afflicting Lebanon, which is the worst economic crisis in its modern history. Tens of thousands of Lebanese lost their jobs or part of their wages and eroded their purchasing power.

Currency exchange

The Money Exchange Syndicate announced the price of the exchange rate of the US dollar against the Lebanese pound with a variable spread between buying at 3850 pounds and selling at 3900 maximum.

Banks

The Central Bank of Lebanon fixed the dollar exchange rate at 1,507.5 pounds. This price applies only to imports of fuel, medicine and wheat.

Banks set the price at 3,850 pounds per dollar when withdrawing dollars from small depositors.