Lebanese Lira Settles in Banks against Dollar, Rises on Parallel Market

The price of the dollar contrasted against the Lebanese lira on Sunday, as it settled in banks while rising on the black market, in light of the continuation of the war between Hezbollah and Israel and the economic crises in the country.

The war in Lebanon resulted in significant damage to the economy, a decline in the Bank of Lebanon's foreign exchange reserves, and an increase in the unemployment rate and the number of displaced.

Two sources from the financial sector also said that Lebanon was included on the gray list of countries under special scrutiny by the Financial Action Task Force (FATF) on combating financial crimes, and a formal declaration is expected, according to Reuters.

The dollar rate against the Lebanese pound held steady on Sunday at the level of 15,000 liras per dollar, which is the rate that has been fixed for months in the Central Bank of Lebanon.

The price of the dollar against the Lebanese lira in the parallel market is witnessing major fluctuations as the war between Hezbollah and Israel continues.

The dollar price in Lebanon rose today on the black market about 89,600 liras to buy, and 89700 liras to sell.

While the price of the dollar against the Lebanese pound today, at the cashiers, came in levels consistent with the prices traded in the market.

Lebanon relies on pricing in dollars in a phenomenon called "dollarization", since the economic crisis that occurred in 2019, and the outbreak of protests in the country, which led to the disengagement of the local lira from the dollar in the parallel market, and then in local banks, and thus the deterioration of the exchange rate of the lira against the dollar.