Lebanon's Central Bank Governor Riad Salameh speaks during an interview for Reuters Next conference, in Beirut, Lebanon November 23, 2021. (Credit: Mohamed Azakir/Reuters)
BEIRUT — The Lebanese lira lost 4 percent of its value in less than 24 hours on Thursday and is currently trading at LL25,000 per US dollar on the parallel market, currency exchangers confirmed to L’Orient Today.
Here is what we know:
• The Lebanese lira hit a new record low, with one US dollar trading at LL25,000 on Thursday night, against LL24,000 on Wednesday. The lira has lost 8 percent of its value since the beginning of the week and 94 percent since the economic crisis started two years ago.
• The lack of progress on the government side, coupled with deteriorating economic conditions are keeping the pressure on the exchange rate. The decision by Banque du Liban forcing importers to source 10 percent of the amount for fuel imports from the parallel market has also been weighing on the market. While the rest is supplied at a rate of LL19,500 by the BDL.
• Banque du Liban has been running out of room to maneuver. Riad Salame confirmed to Reuters that Banque du Liban’s foreign currency liquidity has dropped to $14 billion, even after accounting for the recent SDR inflow of $1.135 billion. This level is dangerously close to the level of required reserves banks are supposed to keep with Banque du Liban, which amounts to 14 percent of foreign currency deposits.