A man holds bundles of Lebanese lira banknotes in an exchange shop in Beirut. (Credit: Joseph Eid / AFP)
The Lebanese lira, which reached a depreciation record of LL90,000 against the dollar on the parallel market Wednesday afternoon, suddenly reappreciated value Wednesday evening following a series of measures announced by Banque du Liban (BDL).
According to online applications that monitor the parallel market exchange rate, the dollar was buying at LL80,000 and selling at LL79,000 shortly before 9 p.m. Wednesday night.
In a statement issued that evening, BDL Governor Riad Salameh, who is also facing prosecution in Lebanon and Europe on corruption charges, announced a series of central bank measures that will take effect Thursday.
Among these measures, BDL will buy and sell dollars at a rate of LL70,000 beginning Thursday. The Sayrafa rate, established by the central bank and was at LL45,400 as of Wednesday night, will increase to LL70,000 on the dollar.
The accelerated fall of the lira in the last two weeks follows the official devaluation of the lira from LL1,507.5 to LL15,000 on the dollar, as of Feb. 1.
On Tuesday night, without any official announcement, authorities tripled the cost of the customs dollar — an exchange rate used to calculate customs duties on imports — from LL15,000 to LL45,000 on the dollar.
These developments take place on the third day of a temporary suspension of the banks' ongoing strike.
In more than three years of acute economic crisis, the Lebanese national currency has depreciated by more than 98 percent.
Meanwhile, without a president or fully-empowered government, Lebanese authorities continue to stall the adoption of the reforms needed to halt the country's economic and financial collapse.
