The exchange rate of the dollar against the Lebanese pound increased, starting on Wednesday, June 9, 2021, in the unofficial (black) parallel market.
The price in this market ranged between 14,025 and 14,075 pounds per dollar, according to local media.
The Lebanese government agreed to an exceptional loan of $200 million to the state electricity company to import fuel for generation before supplies run out.
Since the summer of 2019, Lebanon has witnessed an accelerating economic collapse, exacerbated by the horrific explosion of the Port of Beirut on the fourth of August, and the measures to confront the Corona virus. In March 2020, the state defaulted on paying its foreign debt, and then began negotiations with the International Monetary Fund on a recovery plan, which was later suspended due to differences between the Lebanese negotiators.
The crises of the Lebanese economy multiplied daily, amid a deteriorating reality exacerbated by political paralysis, and there are no solutions in the near future.
Lebanon usually maintains enough fuel stocks for about two months because it is very expensive to hold strategic stocks for a longer period.
The economic collapse sparked unrest, disrupting depositors and their bank deposits, and badly damaged the currency, which has lost about 90 percent of its value against the dollar.
It was decided to calculate the exchange rate for the fuel purchase loan at the official rate, which is 1,500 pounds to the dollar, but the price of the pound in the unofficial market has fallen to about 13,000 against the dollar since the outbreak of the crisis in late 2019.
The Lebanese banks set the price of 3850 pounds to the dollar, when withdrawing the dollar to small depositors a while ago, and it is still in effect today.
And the Syndicate of Money Changers in Lebanon established the pricing of the dollar exchange rate against the Lebanese pound, with a moving margin between the price of 3850 pounds for purchase, and 3900 pounds for sale, as a maximum.
The exchange rate of the dollar in the Central Bank of Lebanon remained at 1507.5 pounds per dollar, and it is allocated to basic commodities only.