According to BDL figures, Lebanon has 302 licensed stockbrokers, who share the market with many other illegal players. (Credit: Florient Zwein/Hans Lucas/L'Orient-Le Jour)
BEIRUT — Lebanon's floundering currency dropped to LL47,000 to the dollar Monday after several other grim milestones for the lira last week — all before going to around LL43,000 Tuesday morning. It's been a turbulent roller coaster ride this holiday season, which some observers have blamed on increased transactions in the market as expatriates return home to Lebanon.
What changed Tuesday morning: Banque du Liban governor Riad Salameh announced he had reset the central bank's Sayrafa platform exchange rate to LL38,000 to the dollar, a jump from last week's rate of LL31,200.
In a statement Tuesday, Salameh denounced "speculation and smuggling [of dollars] at the borders" of Lebanon, which he said was "causing inflation in the markets."
The governor added he had decided to lift all limits on buying and selling dollars for "individuals and companies" within the banks "until further notice."
Previously, transactions via Sayrafa were capped at $400 or less depending on the bank.
On Tuesday afternoon, BDL issued a new statement stating that until Jan. 31, transactions can be carried out until 5 p.m. on each working day. At the time of publication, the dollar was trading on the parallel market for LL43,800 for buying and LL43,500 for selling.
A money changer contacted by L'Orient-Le Jour even claimed to be trading at LL39,500 on Tuesday morning, while another denounced "Riad Salameh's game" on the market.
In crisis for nearly three and a half years, Lebanon has seen its currency depreciate by 96 percent of its value, during which the international community and the International Monetary Fund have repeatedly called on the authorities to engage in a vast reform project that would revive the country's economy.
