Lebanon banks increase greenback exchange rate

Lebanon banks increase greenback exchange rate

BEIRUT “” Lebanese banks sought on Monday to encourage depositors to withdraw trapped dollar savings in Lebanese pounds by increasing their exchange rate, as the national currency continued its tumble on the black market.

Banks have gradually restricted dollar transfers abroad and withdrawals since last year, effectively trapping dollar savings in accounts unless their owners want to convert them into Lebanese pounds. 

Several banks said on Monday they had increased their buying rate from 3,000 to 3,850 pounds to the greenback.

The move comes as talks stall between Lebanon and the International Monetary Fund (IMF) to lift the country out of its worst economic crisis since the 1975-1990 civil war.

The Lebanese currency officially remains pegged at around 1,507 pounds to the dollar, but the black market rate on Monday morning reached a new record of 8,000, according to several specialised websites.

The cap on dollar withdrawals has led those in need of the foreign currency to resort to changers on the black market instead, sending the exchange rate there soaring.

The authorities have struggled to stem the collapse, with the central bank on Friday launching an online platform in an apparent move to oversee money changing operations at an official rate.

Economist Jad Chaaban said banks