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FINANCIAL CRISIS

Lira slides past LL35,000 to the dollar, reaching new all-time low

Lira slides past LL35,000 to the dollar, reaching new all-time low

A money changer exchanges stacks of Lebanese lira for US dollars. (Credit: Reuters)

BEIRUT — After trading at a new all-time low of LL34,000 since the beginning of the week, on Thursday, the lira was trading below LL35,000 to the US dollar on the parallel market.

Here’s what we know:

    • The lira has lost more than 20 percent of its value since parliamentary election day on May 15.

    • Banque Du Liban last week extended circular 161, which facilitates injecting dollars in the market, until the end of July, after rumors that it would stop intervening in the market.

    • Despite the central bank’s extension of the circular, the parallel market rate of LL35,000 to the US dollar continues to diverge from the Sayrafa rate, LL24,300 to the US dollar, and the difference between the two currently stands at the widest level ever reached.

    • One banker told L’Orient Today, “Circular 161 has lost its effectiveness, the central bank must review its strategy, otherwise there is nothing that can stop the selloff.”

    • In its final meeting before entering caretaker status on Friday, cabinet approved an economic recovery plan which calls for the writeoff of $60 billion in deposits.

BEIRUT — After trading at a new all-time low of LL34,000 since the beginning of the week, on Thursday, the lira was trading below LL35,000 to the US dollar on the parallel market.Here’s what we know:    • The lira has lost more than 20 percent of its value since parliamentary election day on May 15.    • Banque Du Liban last week extended circular 161, which...