The Lebanese Lira dropped to an all-time low at the moment on Lebanon’s parallel market.
Though the official price has not too long ago been elevated to $1 = 15,000 LL from 1,507 LL and the financial institution price at $1 = 8,000 LL, the parallel market was promoting $1 at 100,000 LL – marking an all-time low.
In August 2019, stress on the mounted trade price with the U.S. greenback began, making a parallel price available in the market.
The 2-rate market is a textbook case of weakening Central Financial institution reserves that aren’t capable of defend the official trade price.
Steady monetary pressures pushed by unsustainable sovereign debt, excessive commerce deficit, and deposit outflows on account of lack of confidence made it unattainable for the market to keep up the peg.
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