The Lebanese lira value is dropping quickly against the US dollar on the black market just days ahead of Ramadan.
Just yesterday, the dollar was trading at around 12,225 LBP. While today, the dollar is trading for around 12,750 LBP with black market traders selling it for around 12,775 LBP and buying it for around 12,700 LBP.
The drop was being recorded since Thursday when the Lira first fell against the dollar after bouncing back just days prior.
This drop comes just days before the start of the Muslims fasting month of Ramadan. With the skyrocketing prices and lack of supply of basic food products, especially subsidized products, Ramadan in Lebanon will be different.
Additionally, this is the second Ramadan observed during the pandemic. This year, Lebanon’s COVID-19 Committee issued a list of recommendations for preventive measures to be taken throughout the fasting month.
Lebanon has been without a government for nearly 8 months now and efforts by the Prime Minister-designate Saad Hariri, to form a rescue government in line with the French initiative have gone in vain while the economic situation continues to collapse.
The Lebanese Banks Association (ABL) stressed that the financial and banking crises in the country were caused primarily by the political crisis and the state increasingly borrowing from the money deposited in the Central Bank (BDL)
According to the ABL’s statement, once the state settles its debts with the Central Bank (BDL), banks would be able to unfreeze people’s savings. This comes right after Michel Aoun blamed BDL and its governor, Riad Salameh, for the financial collapse.