Beirut: The Lebanese pound sank to a new historic low against the US dollar on the parallel market as the country continues to face an unprecedented financial crisis.
The exchange rate of the Lebanese pound on Tuesday declined to 45,000 against the dollar, down from the previous record low of 40,000 on October 14, Xinhua news agency reported.
Patrick Mardini, president of the Lebanese Institute for Market Studies, attributed the recent increase in the US dollar price to the continuous printing of the Lebanese pounds to finance the budget deficit.
“People are using this local currency to buy US dollar, which is leading to an increase in the demand on the foreign currency and the rise in its price,” Mardini said.
He added that the dollar’s price is expected to rise further as the central bank will continue printing money to finance the budget deficit.
Lebanon still needs to implement the necessary reforms to reach a deal with the International Monetary Fund and unlock billions of dollars in aid to put the country on the recovery path.
Since 2019, Lebanon has been suffering from an unprecedented financial crisis that resulted in the collapse of the local currency.
Hit by intertwined political, economic and health crises, Lebanon’s poverty rate now has risen to more than 74 per cent, according to the World Bank.
(Except for the headline, the story has not been edited by Siasat staff and is published from a syndicated feed.)
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