LebGeeks

user

Member

Re: Lebanese lira to USD exchange

There is no floor to how low it can go. Other than that we export very little, the fact that we allow the US dollar to be circulated inside our country makes the lira totally worthless... If given the choice between trusting the US government and trusting the Lebanese government with notes, everyone will intuitively opt for the US dollar...

A weak currency could be a great thing in the long run, and people becoming poor now could be a good thing for the long run I am sorry to say this but... The artificially strong currency has blinded people from corruption, they always felt that the increasing public debt and the corruption all over does not hurt them, now they will see that it hurts a loot, and they will be much more critical. The weak currency will drive us to produce things locally, it will drive us to push for public transportation fixes rather than import 5 billion dollars worth of cars and then another 5 billion worth of petrol...

Weak currency just allows "controlled burn" of accumulated wealth and purchasing power, but there is no miracle in it.

I think there would be a miracle in it. People were shielded from much of the pain of corruption, they used to hear that hundreds of millions are wasted here and there and go meh. Now they understand it is their money, they will be more careful and more critical and more active.

Ideally, since pretty much every economist knew since at least 2016 this was coming, the banks should have tightened back then, we could have had a controlled slow devaluation, while we get people to adapt and ramp up local industry and switch gears. The problem is they kept the lie going till the last second and now the collapse is almost uncontrolled... There is no more easy money from government employment and no more easy money from bank interest, the people will have to farm to eat and will have to produce what they need, but time might be short to adapt the economy.

NuclearVision

Member

Re: Lebanese lira to USD exchange

@user, you are correct, I want to add that many institutions knew it was coming, sooner not later.

Kareem

Member

Re: Lebanese lira to USD exchange

2200 today.

TheIlluminative

Member

Re: Lebanese lira to USD exchange

Wow, it's gonna hit 3000 L.L soon I guess...!

AVOlio

Member

Re: Lebanese lira to USD exchange

People when mentioning the rates, mention of you buying or selling.
And it doesn't hurt to mention where you quoted that rate from, as in what region and if you want, the specific shop as well.

Kareem

Member

Re: Lebanese lira to USD exchange

People when mentioning the rates, mention of you buying or selling.
And it doesn't hurt to mention where you quoted that rate from, as in what region and if you want, the specific shop as well.

That's the buying price in beirut, barbir.  Problem is that even at 2200, I couldn't find USD.

rolf

Member

Re: Lebanese lira to USD exchange

What regulard USD needs are there for a "normal"  person living in Lebanon?
I know you will need USD if you are traveling, and if you are ordering something from abroad.
Generator bill, is it still paid in USD? Anything else?

Kareem

Member

Re: Lebanese lira to USD exchange

What regulard USD needs are there for a "normal"  person living in Lebanon?
I know you will need USD if you are traveling, and if you are ordering something from abroad.
Generator bill, is it still paid in USD? Anything else?

Why are you paying generator bill in USD ? I requested to pay in LBP. Fuel and diesel are in LBP and the price is still the same.

NuclearVision

Member

Re: Lebanese lira to USD exchange

Its 2250 on businessnews.com.lb and some friends told me it's hit 3000.

Kareem

Member

Re: Lebanese lira to USD exchange

Check the date of this article :

https://www.yerepouni-news.com/2019/07/ … 7qVyyOOwUw

Guitaret

Member

Re: Lebanese lira to USD exchange

Amhaz currently not accepting LL at all, Class (citymall) will accept it for 2300LL/USD and does not accept CC

Guitaret

Member

Re: Lebanese lira to USD exchange

The mechanic just called my dad and told him his car will cost him 700$ and even tough this is overpriced, he wants to get paid in USD or at the exchange price. Now every little shop wants piece of the pie. My dad gets paid in LL and cannot afford the amount at this exchange. I feel shit will break soon because we (as a middle class family) are not able to bear it anymore, what is happening with those less fortunate :(

rolf

Member

Re: Lebanese lira to USD exchange

This is mad. There are no USD in the country but people want to get paid USD.

To be fair this has to happen at some point because nobody outside the coutry take LBP (and this is not new). So anything you want to import, including spare parts, they will need USD.

However the greed and the panic is not helping. I believe that Lebanon will be OK but right now it's chaos.

Last edited by rolf (November 28 2019)

kareem_nasser

Member

Re: Lebanese lira to USD exchange

A while ago i wanted to ask the same question here, basically what is the financial logic behind banks regular rate and in the market an inflated supposedly real rate?

True panic doesnt help, and since when did we pay or had USD on hand unless we had to?

rolf

Member

Re: Lebanese lira to USD exchange

It is the "Interbank transfer rate" and is accessible to few big institutions (banks, etc.)

VincentKeyboard

Member

Re: Lebanese lira to USD exchange

One of the shops near where I live just showed me a bill from one of his suppliers. It is 64 dollars and he charged him 192,000LL

nuclearcat

Member

Re: Lebanese lira to USD exchange

The mechanic just called my dad and told him his car will cost him 700$ and even tough this is overpriced, he wants to get paid in USD or at the exchange price. Now every little shop wants piece of the pie. My dad gets paid in LL and cannot afford the amount at this exchange. I feel shit will break soon because we (as a middle class family) are not able to bear it anymore, what is happening with those less fortunate :(

Unless it is absolutely imported product - IMO just leave if they demand $.
For price in LL, if it is unreasonably high - do same as you do, when you see high price on some shop, search lower.
Let them starve.
With mechanic, if he already did the job, in Lebanon a bit tough, ask for official detailed invoice and give him cheque :)

Guitaret

Member

Re: Lebanese lira to USD exchange

What is the deal with this story?

بعدما وصل إلى الـ2350 ليرة صباحاً...سعر صرف الدولار ينخفض الى 1850 ليرة لبنانية
Source: http://bintjbeil.org/article/169886

Nemesis-301

Member

Re: Lebanese lira to USD exchange

I think the biggest issue for suppliers and importers (like where I work), is the fact that we cannot exchange LL to Euro,
I mean its a stupid process that we & anyone who wants to bring products to the country from Europe has to go through a process of LL-->USD-->EUR, simply because the bank makes the process like that.
Most of Lebanons imports comes from Europe, and if this were possible, it could solve a lot of issues...

Padre

Member

Re: Lebanese lira to USD exchange

What is the deal with this story?

بعدما وصل إلى الـ2350 ليرة صباحاً...سعر صرف الدولار ينخفض الى 1850 ليرة لبنانية
Source: http://bintjbeil.org/article/169886

Supply and Demand.

Johnaudi

Member

Re: Lebanese lira to USD exchange

This is what happens when you're unable to break a resistance this strong at 2350, it looks like our support is 1850, not going to go below that anytime soon.

NuclearVision

Member

Re: Lebanese lira to USD exchange

and buying? also under 2000? if thats the case  then allow me to say that the problem is artificial  and easily resolved

Kareem

Member

Re: Lebanese lira to USD exchange

Don't forget that we're close to the beginning of the month. A lot of people have debts and need to pay in LBP, so people are selling USD to pay less.

This is very temporary and the USD will go even higher starting from the 4th of december ( my own speculation )

xazbrat

Member

Re: Lebanese lira to USD exchange

Don't forget that we're close to the beginning of the month. A lot of people have debts and need to pay in LBP, so people are selling USD to pay less.

This is very temporary and the USD will go even higher starting from the 4th of december ( my own speculation )

It was not popular on the street, but paying that $1.5 Billion Eurobond today was important financially.  It may have also lowered the risk of default and also the value of the dollar.  Of course, tomorrow is another day and another story....

Last edited by xazbrat (November 28 2019)

Kareem

Member

Re: Lebanese lira to USD exchange

Don't forget that we're close to the beginning of the month. A lot of people have debts and need to pay in LBP, so people are selling USD to pay less.

This is very temporary and the USD will go even higher starting from the 4th of december ( my own speculation )

It was not popular on the street, but paying that $1.5 Billion Eurobond today was important financially.  It may have also lowered the risk of default and also the value of the dollar.  Of course, tomorrow is another day and another story....

But I don't think it means anything. Since the total USD ( liquid cash ) is lower day after day since no money is being transferred from abroad and you need to import, the demand will be consistent.

We managed to pay a $1.5 billion today however it's always been the case. We have another commitment in April 2020 so don't expect things to change dramatically.