LebGeeks

Tech Guru

Member

Re: Lebanese lira to USD exchange

I need to highlight something:

Why don't the money exchnagers abide by the official exchange rate of the dollar set by the Bank of Lebanon? Why does the Bank of Lebanon not impose an official exchange rate obligation on them? Are there laws requiring a bank-like teller to adopt the official dollar exchange rate? Many questions from citizens and even officials, who did not bother to see the Banking Act. 

The law regulating the practice of the profession of the money exchangers in Lebanon does not include a clear-cut text document obligation to exchange at the official exchange rate, but deals under the act with the currency as a commodity subject to supply and demand. The law includes a lot of operational details, the document of incorporation, capital and manner of accounts, daily access to the process of buying and selling currencies. Banks are clearly warned against receiving deposits and dealing with remittances and other tasks entrusted to banks.

In Lebanon 734 Company exchange licensed by the Central Council of the BDL. Entitled as Category exchange company (a Category A or category B) purchase and sale of foreign currency against any other foreign currency, or for the currency of Lebanon buy banknotes or metal parts, and buy and sell coins, bullion, metallic coins, transfers, and tour companies, and within the ceiling determined by the Bank of Lebanon. And all those powers and business regulated by the Banking Control Commission of Lebanon, and are subject to the records and institutions of conflict the provisions of the Bank Secrecy Act.

The exchange  black market cannot be forced by law , they simply  abide by the demand-supply factor.

Last edited by Tech Guru (November 23 2019)

rolf

Member

Re: Lebanese lira to USD exchange

Because there is a shortage of USD which started a few months ago which caused demand to outgrow supply.

Kareem

Member

Re: Lebanese lira to USD exchange

Because there is a shortage of USD which started a few months ago which caused demand to outgrow supply.

And why did this shortage happen and how ? 1 year ago, Western Union, Cash United, Moneygram, Xpress money and co, stopped paying international transactions in USD since BDL imposed new rules.

This was a big red flag and this is when I decided to move some of my money outside the country as I knew something wasn't right; earlier banks were also giving  up to 18% interest rate on LBP.

It certainly wasn't normal to anyone investing in the country. Now the million LBP question.... Where did the dollar go ?

Tech Guru

Member

Re: Lebanese lira to USD exchange

Because there is a shortage of USD which started a few months ago which caused demand to outgrow supply.

Yes ,  I have mentioned that. A Full investiagtion ,  which will not be done sure,  why billion of USD were injected to the Syrian regime to minimize the devaluation of the SP against USD.

Tech Guru

Member

Re: Lebanese lira to USD exchange

Because there is a shortage of USD which started a few months ago which caused demand to outgrow supply.

And why did this shortage happen and how ? 1 year ago, Western Union, Cash United, Moneygram, Xpress money and co, stopped paying international transactions in USD since BDL imposed new rules.

This was a big red flag and this is when I decided to move some of my money outside the country as I knew something wasn't right; earlier banks were also giving  up to 18% interest rate on LBP.

It certainly wasn't normal to anyone investing in the country. Now the million LBP question.... Where did the dollar go ?

Seconday cause.

potato

Member

Re: Lebanese lira to USD exchange

I will try as much not go through politics but what i understood from whats going on up till now. The dominant politicians backed by syria changed their tactics in how their interest in this country. They took over most important key positions in lebanese government that are directly related to how our government make most of their money. And since 2016 they started sending every money they can to syria instead of using this money up here in lebanon and that is why i think hariri will stay away from politics because they are not only sending this money abroad, they wont let go of these key positions that are essential to our economy. There is nothing we (the people) can do about it unless someone take the microphone and explains exactly what is going on.

Last edited by potato (November 23 2019)

Kareem

Member

Re: Lebanese lira to USD exchange

I will try as much not go through politics but what i understood from whats going on up till now. The dominant politicians backed by syria changed their tactics in how their interest in this country. They took over most important key positions in lebanese government that are directly related to how our government make most of their money. And since 2016 they started sending every money they can to syria instead of using this money up here in lebanon and that is why i think hariri will stay away from politics because they are not only sending this money abroad, they wont let go of these key positions that are essential to our economy. There is nothing we (the people) can do about it unless someone take the microphone and explains exactly what is going on.

The official rate is 426 SYP/USD whereas the black market exchange rate is 725 SYP/USD.

Again, it all started at the same time which means the source of USD is either Syria or Lebanon and I think it's conclusive enough to say it's the latter...

Have a look at this article for a good laugh ...

Last edited by Kareem (November 23 2019)

user

Member

Re: Lebanese lira to USD exchange

It is not the fault of the currency exchange. If he exchanges 1 usd for 1500 lbp, he will run out in a split second and no one will sell him dollars anymore. Would that have solved the problem? The exchange is also buying the dollar at above the market rate, it's not like they are magically getting it for 1500 and then selling it for 1900. The peg system only works if your currency is very powerful and you are trying to weaken it, it does not work when your currency is weak and you are trying to strengthen it... (it costs too much to artificially strengthen and in the end you will run out of money)

It's not enough to declare that the peg is 1 usd=1500lbp, you also have to provide the dollars yourself at that rate(talking about Riyad Salameh) he can make all the claims he wants, but actions speak louder than words, he is not supplying dollars at 1500lbp and neither are the banks.

The economy is self correcting, buying from abroad will be expensive and this will push people to farm again and produce locally. We can argue all day why the crisis happened now and it did not happen next year or the year after, but eventually it was definitely inevitable. We had a welfare state, exactly like Venezuela, where the people on welfare were the government employees. The government handing out dollars it did not have...

Last edited by user (November 23 2019)

eWizzard

Member

Re: Lebanese lira to USD exchange

That sudden jump in 2017... I wonder how Syrians are coping with this.

Kareem

Member

Re: Lebanese lira to USD exchange

https://i.imgur.com/aNKcX9Q.jpg

That sudden jump in 2017... I wonder how Syrians are coping with this.

Technically speaking, they had to pay the Russians a fortune to get military support hence the jump at the same time.

However, Syria is not Lebanon, they have or used to have raw material, electricity, infrastructure and they are a productive country' the standard of living isn't the same ( in general ).

I don't think it affected them as much as the war itself.

eWizzard

Member

Re: Lebanese lira to USD exchange

And the people who have savings in SYP?

Kareem

Member

Re: Lebanese lira to USD exchange

And the people who have savings in SYP?

If you can afford food, electricity, education and other life necessity, I don't think you'd care that much since everything is priced in SYP.

nas93

Member

Re: Lebanese lira to USD exchange

I heard some ATMs are being filled with USD is this correct? Has anyone withdrawn using their card this week

user

Member

Re: Lebanese lira to USD exchange

from 2013 to 2016 In Canada the Canadian dollar slipped 40% in 2016 from 1 usd= 1 cad to 1usd = 1.45 cad, equivalent to the Lebanese lira slipping from 1500 to 2100. And nobody cared, nobody. You'd find it difficult to even find one article talking about it. Because local production in a normal country is priced in the currency of that country, and the price remains fixed. And this is what we need in Lebanon, we don't need the 1 usd = 1500 lira, we need the bag of bread to be 1500 lira and we need our farmers to make it. And to hell with what the dollar does...

In Egypt this is how they survive even though the average Egyptian makes the equivalent of 200$ a month, local production priced in the local currency.

Last edited by user (November 23 2019)

TrollFatGuy

Member

Re: Lebanese lira to USD exchange

It doesn't make sense, but if you think about it its a good thing, sooner or later people will realize it and start using LBP finally, there will be less demand on usd.

That's not really the case. I called a mobile store in DT to ask about the availability of the Note10+ S-pen. Price was 35 USD or 66,000LL.

I asked him about the rate, he said it's 1900.

Sorry but I'll pay in USD.

Or just boycott this shops, I am sorry but 90% of these products were bought months ago way before the USD crisis and these people are trying to steal us, I rather go to another shop who accept a logic rate under 1600 than pay to a thief
And yes if you search a bit you will find honest shop.
If we stop feeding these shops who play with prices they will be obliged to return to normal rates, for example when I wanted to buy a PC monitor pcanparts wanted +50000LL because he raised the $ ratio from a day to another, I said them polity to go *** themselves , I bought the same monitor from Mojitech at the original price in LL, and it was at the 1st week of the USD crisis meaning 100% they bought the screen at the old USD rate

I tried to buy a monitor from them the week after the one you mentioned but they marked up the price to 1850LL per USD. I think they just hadn't caught up to the trend. I ended up buying elsewhere (in USD though).

infiniteloop

Member

Re: Lebanese lira to USD exchange

Lebanon is living what US lived in the 1920s, they had the biggest ever economical crisis because of the ''laissez faire laissez passer'' principle that the government doesn't interfere with finance, they finally fixed the crisis by interfering and ending this principle, Lebanon about 100 years later didn't learn this lesson and they don't want to regulate the exchange offices even though we lived this situation already in 1989-1990 because private companies like exchange offices are stronger than public institutions

Last edited by infiniteloop (November 23 2019)

sero

Member

Re: Lebanese lira to USD exchange

sold USD for 1900 on sat in Hamra

bobo619

Member

Re: Lebanese lira to USD exchange

1$=2000 L.L   25/11 1:30Pm

nosense

Member

Re: Lebanese lira to USD exchange

sold USD for 2005 in hamra an hour ago

NuclearVision

Member

Re: Lebanese lira to USD exchange

sold USD for 2005 in hamra an hour ago

That is quick! What the hell is happening

Kareem

Member

Re: Lebanese lira to USD exchange

sold USD for 2005 in hamra an hour ago

That is quick! What the hell is happening

That's pretty normal.... the true exchange rate is 3000LL per dollar.  We're catching up slowly.

NuclearVision

Member

Re: Lebanese lira to USD exchange

sold USD for 2005 in hamra an hour ago

That is quick! What the hell is happening

That's pretty normal.... the true exchange rate is 3000LL per dollar.  We're catching up slowly.

according to what, who ?

bobo619

Member

Re: Lebanese lira to USD exchange

Speculation for tomorrow 2500 LL

Kareem

Member

Re: Lebanese lira to USD exchange

That is quick! What the hell is happening

That's pretty normal.... the true exchange rate is 3000LL per dollar.  We're catching up slowly.

according to what, who ?

According to the economical situation in the country, the demand and supply.  No fresh dollar is coming from abroad so your reserve is getting lesser.

NuclearVision

Member

Re: Lebanese lira to USD exchange

would it jump beyond 3000?