Two people hold stacks of Lebanese liras and US dollars. (Joseph Eid/AFP)
BEIRUT — The Lebanese lira continued its fluctuation on the parallel market Tuesday afternoon, trading at around LL38,000 against the dollar. That was a step down from Tuesday morning when the lira traded at above LL39,000, an unprecedented drop as Lebanon continues its financial decline.
According to the Lirarate.org platform, the dollar was worth LL38,000 to buy and LL37,900 to sell, as of 1:49 pm. The gap between this rate and the 29,800-per-dollar rate on the Sayrafa platform — designed by Banque du Liban to try to stabilize the exchange rate — continues to widen, now amounting to LL7,900.
Despite the steep social and economic decline in the country, leaders have continued to block the reforms that could unlock a financial rescue package. A delegation from the International Monetary Fund is currently in Lebanon, after a preliminary agreement with the organization was reached in April to provide $3 billion in aid over four years. Lebanon can receive the aid if it succeeds in enacting various reforms requested by the IMF.
Officially fixed since 1997 at a rate of LL1,500 to the dollar, the local currency has lost 95 percent of its value since 2019. And since late 2019, banks have imposed unprecedented restrictions, preventing depositors from withdrawing their money.
Unable to withdraw their money in dollars, depositors have resorted to holding up banks to claim their savings, including several in a single day last week. As a result, the Association of Banks in Lebanon ordered the closure of all branches for three days starting Monday.
Four out of five Lebanese are now living below the poverty line according to the UN, a trend accelerated by triple-digit inflation. The prices of fuel and several basic necessities — which are no longer subsidized by the authorities — are also rising.