For at least 5 days now, the exchange rate of the Lebanese pound against the dollar has been showing no major changes on the black market.
On Wednesday, black market traders were selling the dollar for 12,200 LBP and buying it for 12,150 LBP. The currency was trading for around the same rate since Friday.
A week ago, the Lebanese pound recorded a rise when top U.S. State Department official David Hale met with Lebanese leaders to urge a new government formation. Black market traders were selling the dollar for 12,000 LBP and buying it for 11,900 LBP.
This time last year, the Lira was trading at around 4,000 LBP. Last month, it hit an all-time low trading at 15,000 LBP.
With the situation so dire, many factors are preventing international support and Lebanese officials are working sluggishly to solve Lebanon’s crises.
From failure to conduct a forensic audit to the regular smuggling to Syria, which is costing Lebanon’s economy around $15 million a day, according to France 24, and the untamed smuggling of subsidized food products to various countries; to name some.
Most of all, the unchanging positions of Lebanon’s President Michel Aoun and Prime Minister-designate Saad Hariri continue to impede the must of forming a functional government.
Aoun insists on gaining veto power for his political group under the claim of protecting Christian rights. Meanwhile, Hariri is currently on his way to meet with the Pope after being invited to the Vatican.