The Lebanese pound (LBP), the national currency of Lebanon, has long been a cornerstone of the countryS economic identity. Introduced in the late 1930s, it replaced the Syrian pound and has as played a pivotal role in shaping Lebanon’s financial landscape [[1]]. However, recent years have seen the LBP face unprecedented challenges, especially in its exchange rate against the US dollar. On January 9, 2025, the financial markets in Lebanon witnessed a rare moment of stability as the price of the dollar against the lebanese pound remained steady, coinciding with the much-anticipated presidential elections.
A Glimmer of Optimism Amidst Economic Turmoil
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The Lebanese Parliament convened on January 9, 2025, to elect a new President of the Republic, marking a meaningful step toward ending a two-year presidential vacancy. This political milestone has injected a sense of optimism into the financial markets, with many hoping it will pave the way for economic recovery. Lebanese Prime Minister Najib Mikati emphasized the challenges ahead, stating, “Challenges will be faced after the election of the President of the Republic, in order to rebuild institutions.”
Today’s Dollar Price in Lebanon
At the Central Bank of Lebanon, the dollar was recorded at approximately 15,000 Lebanese pounds on January 9, 2025. This rate reflects the official exchange rate, which has remained relatively stable in recent weeks.However, the story is more complex when examining the parallel market, where the dollar’s value often diverges substantially from the official rate.
The Black Market: A Mirror of Economic Realities
The parallel market, often referred to as the “black market,” is a critical indicator of the lebanese pound’s true value. On January 9, 2025, the dollar traded at around 89,600 Lebanese pounds for purchase and 89,700 pounds for sale. This stark disparity between the official and black market rates underscores the deep-rooted economic challenges Lebanon faces, including hyperinflation and a loss of confidence in the local currency.
Dollarization: A Double-Edged sword
Since the economic crisis of 2019, Lebanon has increasingly relied on dollarization, a phenomenon where the US dollar becomes the preferred medium of exchange. This shift has further eroded the lebanese pound’s value, as businesses and individuals alike turn to the dollar for stability. The disengagement of the LBP from the dollar in both the parallel market and local banks has exacerbated the currency’s decline, making it one of the weakest currencies in the region.
Key Exchange Rates on January 9,2025
| Market | Exchange Rate (LBP per USD) |
|————————–|———————————|
| Central Bank of lebanon | 15,000 |
| Black Market (Purchase) | 89,600 |
| Black Market (Sale) | 89,700 |
Looking Ahead: A Path to Recovery?
The stabilization of the dollar’s price on January 9,2025,offers a glimmer of hope for Lebanon’s beleaguered economy. However, the road to recovery remains fraught with challenges.The election of a new president is a crucial first step, but rebuilding institutions and restoring confidence in the Lebanese pound will require sustained effort and international support.
For those looking to stay updated on the latest exchange rates, platforms like Xe and Exchange Rate Guru provide real-time data and past trends,offering valuable insights into the ever-evolving dynamics of the Lebanese pound.
As Lebanon navigates this critical juncture,the resilience of its people and the strength of its institutions will be tested. The journey toward economic stability is far from over, but with decisive leadership and collective effort, there is hope for a brighter future.
As Lebanon grapples with unprecedented economic challenges, the Lebanese pound (LBP) has become a focal point of national and international attention. With the recent stabilization of the dollar exchange rate coinciding with the presidential elections, many are cautiously optimistic about the country’s economic future. In this exclusive interview, Senior Editor of world-today-news.com, Sarah Thompson, sits down with Dr. Rami El-khoury,a leading economist specializing in Middle Eastern financial systems,to discuss the dynamics of the Lebanese pound,the impact of dollarization,and the path to recovery.
The Current State of the Lebanese Pound
Sarah Thompson: Dr. el-Khoury, thank you for joining us today.Let’s start with the basics. The Lebanese pound has faced critically important devaluation in recent years. Can you explain the factors that have led to this crisis?
Dr. Rami El-Khoury: Thank you, Sarah. The crisis is multifaceted, but it primarily stems from decades of economic mismanagement, political instability, and a lack of structural reforms. The collapse of the banking sector in 2019, coupled with a massive public debt burden, eroded confidence in the LBP.The reliance on the US dollar as a parallel currency further weakened the pound, creating a dual exchange rate system that has destabilized the economy.
The Role of Dollarization in Lebanon’s Economy
Sarah Thompson: You mentioned dollarization. How has this phenomenon impacted the Lebanese pound and the broader economy?
Dr. Rami El-Khoury: Dollarization has been both a symptom and a cause of the crisis. As confidence in the LBP waned, businesses and individuals began to rely on the US dollar for transactions, savings, and even pricing goods. This shift has further marginalized the Lebanese pound, making it increasingly irrelevant in daily economic activities. While dollarization provides short-term stability for those who can access dollars, it exacerbates inequality and deepens the divide between the official and black market exchange rates.
The Black Market and Its Implications
Sarah Thompson: Speaking of the black market, the disparity between the official and parallel exchange rates is staggering. What does this tell us about the state of Lebanon’s economy?
Dr. Rami El-Khoury: The black market is a reflection of the real economic realities in Lebanon. The official exchange rate, pegged at 15,000 LBP per USD, is largely symbolic and disconnected from market forces. In contrast,the black market rate,which recently hovered around 89,600 LBP per USD,reveals the true value of the pound. This gap highlights the loss of trust in the central bank’s ability to manage the currency and underscores the urgent need for comprehensive reforms.
The Impact of the Presidential Elections
Sarah Thompson: The recent presidential elections have been seen as a potential turning point. Do you believe this political milestone can pave the way for economic recovery?
Dr. Rami El-Khoury: The elections are a step in the right direction, but thay are just the beginning. Lebanon’s economic challenges are deeply rooted and require more then just political leadership. The new president will need to work closely with the government, international partners, and civil society to implement structural reforms, rebuild institutions, and restore confidence in the Lebanese pound. Without these efforts, the optimism generated by the elections will be short-lived.
Looking Ahead: A Path to Recovery
sarah Thompson: what do you see as the key steps Lebanon must take to stabilize its currency and economy?
Dr. Rami El-Khoury: The road to recovery is long and arduous, but not impossible.First, Lebanon must address its fiscal deficit and public debt through transparent and sustainable measures. Second, the banking sector needs comprehensive restructuring to restore trust and liquidity. Third,the government must work to unify the exchange rate and reduce reliance on the black market. international support and investment will be crucial,but they must be tied to concrete reforms. The resilience of the Lebanese people is undeniable, but they need a clear and actionable plan to move forward.
