The Lebanese pound recorded a new decline in the parallel (black) market transactions today, Tuesday, to an average of 14.5 thousand pounds per one dollar.
Lebanese media outlets and websites monitoring exchange rate developments reported today, Tuesday, that the sale of the dollar to consumers in early transactions on the black market ranged between 14.3 and 14.5 thousand pounds, a new low level that had not previously been recorded in the local currency.
Domestic demand for foreign exchange, especially the dollar, rose within the markets, amid declining customer confidence in the pound, which threatens to accelerate the hypothesis of implementing a full or directed float in exchange rates.
The exchange rate on the official market is 1510 liras per dollar.
This comes while fears of a further escalation in the pace of popular protests in several cities increased, and the possibility that banks will be unable to provide customers' deposits, after the expiration of a deadline set by the Central Bank to raise bank capital.
The relationship between banks operating in Lebanon and depositors is heading to more complexity, following a deadline set by the Central Bank of Lebanon, which expired on February 28, last year, which decided to increase the capital of these banks.
In August 2020, the Banque du Liban obligated the banks operating in the market to increase their capital by 20%, and to reconfigure their accounts with correspondent banks by 3%, no later than the end of last February.
The capital of banks operating in Lebanon amounts to $ 20 billion, and an increase of 20% means that there is an addition of $ 4 billion, and most banks will face difficulty in fulfilling them.