Lebanon’s central bank has announced that it will begin selling unlimited amounts of US dollars in response to the devaluation of the Lebanese pound. The move comes after the pound’s parallel market rate weakened from roughly 121,000 to the US dollar on Tuesday morning to 140,000 by the afternoon, leading to widespread anger among residents over their declining purchasing power.
The announcement by Governor Riad Salameh is aimed at halting the spiraling devaluation of the Lebanese pound, which has been on a downward trend for some time now. The move is expected to provide some relief to Lebanese citizens who have been struggling to make ends meet amid a severe economic crisis that has rocked the country in recent years.
The devaluation of the Lebanese pound has been caused by a combination of factors, including political instability, corruption, and the impact of the COVID-19 pandemic. The crisis has led to a shortage of foreign currency in the country, making it difficult for businesses to import goods and for citizens to access US dollars for daily expenses.
The decision by the central bank to sell unlimited US dollars is expected to help stabilize the Lebanese pound and restore confidence in the country’s economy. However, some experts have warned that this move could lead to inflation and further devalue the currency if not handled carefully.
Lebanon’s economic crisis has been further exacerbated by the explosion that rocked the port of Beirut in August 2020, which caused widespread damage to the city and left over 200 people dead. The disaster has further strained the country’s already fragile economy and led to widespread protests against the government’s handling of the crisis.
The central bank’s decision to sell unlimited US dollars is seen as a positive step towards addressing the country’s economic crisis, but experts say that more needs to be done to address the root causes of the problem. This includes tackling corruption and implementing structural reforms that can help to stabilize the economy in the long term.
In conclusion, the central bank’s decision to sell unlimited US dollars is aimed at halting the devaluation of the Lebanese pound and providing relief to citizens who have been struggling amid the country’s economic crisis. However, more needs to be done to address the root causes of the problem and restore confidence in the country’s economy.