The Lebanese pound continues to fall on the black market for the 4th consecutive day, with an exchange rate of 13,425 LL / USD on the buy side and 13,475 LL / USD on the sell side due to the deteriorating political situation, the absence of any progress with regard to the composition of the government but also due to the decision of the Banque du Liban to maintain circular 151 despite a decision of the Council of State which considers it illegal.
As a reminder, this circular introduced an exchange rate of 3,900 LL / USD for the withdrawal of accounts denominated in dollars instead of the official exchange rate of 1,500 LL / USD, paradoxically leading many depositors to withdraw their funds at this rate. 3,900 LL / USD and then buy foreign currencies on the black market in an attempt to limit their losses.
However, this procedure also allows Lebanese banks to limit their financial losses after having, in previous years, exchanged the dollars of their customers in local currency in the form of a certificate of deposit, at higher interest rates with the Bank of Lebanon. This procedure is similar to a Ponzi scheme, say many observers.
