The value of the Lebanese pound against the dollar has deteriorated sharply on the black market in the last 24 hours. the parity of the national currency against the greenback is now 15,875 LL / USD to buy and 15,925 LL / USD to sell, against a background of information indicating significant purchases of foreign currency by banks which thus attempt to obtain sufficient funds before July 1, the date of entry into force of Circular 158 of the Banque du Liban.
This stipulates that Lebanese banks must provide 400 USD in cash to customers who request to withdraw these funds. For the Banque du Liban, this is an attempt to put an end to the capital controls unilaterally put in place by the Association of Banks in Lebanon in November 2019.
Another cause of this sudden deterioration, the decision of the local authorities to use the rate of 3900 LL / USD to finance the purchase of basic necessities and in particular fuel today. For the Banque du Liban, it will therefore be a question of printing a large amount of money, while it has already increased by 40,000 billion Lebanese pounds in barely 2 years, inducing an inflationary surge.
