Lebanese Central Bank Governor Riad Salameh announced today, Tuesday, that the bank will raise the exchange rate of the dollar from £1,507 to £15,000 starting on February 1st.
This is 90 percent higher than the current official exchange rate, which has remained unchanged for 25 years.
The move from the old rate of 1507 to 15000 is still far from a parallel market as the dollar traded at 57000 per dollar on Tuesday.
Salameh said: “Banks will be given 5 years to recover losses incurred as a result of currency devaluation.”
He added: “The change in the exchange rate to £15,000 is a step towards unifying the country’s several exchange rates, in line with the draft agreement Lebanon reached with the International Monetary Fund last year, setting the conditions for launching a $3 billion bailout plan. “
A source: Reuters