Black market trading of dollars for Lebanese pounds is reported to have hit a record low in early March of L£10,000 to the dollar. Although rates have since recovered they still remain much below the country’s official exchange rate.
The Lebanese pound has officially been pegged to the dollar at a fixed rate of about L£1,500 since 1997. However, in recent years a black market for dollars has emerged, driven by rampant inflation and Lebanese citizens limited ability to access dollars via official channels. This is significant because much of Lebanon’s economic activity is conducted in dollars rather than in Lebanese pounds.
