LebGeeks

kareem_nasser

Member

Re: Lebanese lira to USD exchange

it seems like every move the bdl does (and i'm not assuming they want to fix things) they make things worse, why don't they just freeze, stop screwing with people.

If there was no magic (as was the case for decades) nothing can be done. This should have been the case since 1990, our economy is unproductive with a huge trade deficit. Allowing the magical LBP account conversion to USD while no real USD notes are supplied, created a bigger gap.
Sadly many benefited or did this even regular citizens, not just politicians, warlords or ruling class.

Heads up: Our economy is over 70% dollarized, we never asked how. :)

Last edited by kareem_nasser (April 22 2020)

NuclearVision

Member

Re: Lebanese lira to USD exchange

I used to make fun of people who stock their money under a tile, I feel so stupid and apologetic.

rolf

Member

Re: Lebanese lira to USD exchange

I used to make fun of people who stock their money under a tile, I feel so stupid and apologetic.

Well it is unproductive, even USD loses around 2% /year of its value so in a normal situation it is better to invest them.
However what we have here is not really a normal situation...

Last edited by rolf (April 22 2020)

xazbrat

Member

Re: Lebanese lira to USD exchange

it seems like every move the bdl does (and i'm not assuming they want to fix things) they make things worse, why don't they just freeze, stop screwing with people.

Because what they NEED to do and what they are doing are half assed and will lead to the same result.  It would be much easier if they just devalued the lira straight out instead of making tiers.  I know they want to try to preserve the dollar for fuel, medicine and food, but everything else has gotten more expensive for the consumer.  If they just floated the lira with a backstop, and subsidized the prices of food and medicine, it would be cheaper for us and the government.  If you look at the prices in supermarkets, lots have doubled or close to that, so whatever they are doing, isn't working. 

It just looks like Salameh is trying to save the banks instead of the country.

Kareem

Member

Re: Lebanese lira to USD exchange

3660 LL. 1:00 PM.

Just saying :-)

Update : did I say 3660?  Sorry that was half an hour ago.

Its 3780 LL...

Last edited by Kareem (April 23 2020)

Tech Guru

Member

Re: Lebanese lira to USD exchange

Free Falling Applicable of the LBP against USD & Foreign currencies are applicable now .. Last Three BDL Circulations .. Dry out USD money supply on the market more & more .. Exchange rate will skyrocket without any control.. The exchange rate destiny & our necks are in the hand of the black market .. Supply /Demand rules. .Haircut in action too.. At this very fast down fall we will expect 5000 LBP soon .. 90 % of the Lebanese got paid in LBP  with minimum wage ceiling of just 675,000 LBP .. Many has been slipping  into poverty , robbery & crime rate had been exponentially increasing. In an exporting none productive economy  from the an exported biscut to every thing , all day to day food , commodities , ane everything will skyrocket vs rapid loss of purchasing power = a big " hunger revolution" will kickoff.

Last edited by Tech Guru (April 23 2020)

eWizzard

Member

Re: Lebanese lira to USD exchange

We just had 10% inflation increase in a single day. I think we just joined the hyperinflation club.

Kareem

Member

Re: Lebanese lira to USD exchange

And.... Its 4000LL

VincentKeyboard

Member

Re: Lebanese lira to USD exchange

This is a tragicomedy.

infiniteloop

Member

Re: Lebanese lira to USD exchange

Once we will be back to work (for people who still have jobs) they should raise our salaries in lbp depending the rates or else 90% of businesses will close in a matter of 3 months because people will only have 1/3 of their salaries.
If all medium to big companies raise the salaries together it will bring back purchasing power meaning a reboot of the Lebanese trade market, meaning hope.
Our country always lived on trade, if we kill employees salaries by refusing to increase them to actual $ value,expect a new civil war because people will be desperate to the max

VincentKeyboard

Member

Re: Lebanese lira to USD exchange

Mine went down from 1.5 million to 750k but I told him I need at least 50k for bus transportation so he got it up to 800K.
I can live on 700k because it will cover internet, electricity, food, and my phones, then save a 100k every month for emergencies. But it means I have to walk to work.
Work hours will be reduced from 8AM-5PM to 9AM-4PM because we have very few clients.
I can look for an evening part time job but I'm not putting my hope on that since it's not likely anyone is going to hire a 40 year old for a random part time evening job.

Luckily, my next non monthly planned bill is not till the end of the year and is only about 500k so I have time to save.

NuclearVision

Member

Re: Lebanese lira to USD exchange

This is really sad.
The thing is, most companies can't raise salaries to keep up with usd value. Why? Because we are not producing and exporting products to get usd in return.
Our economy heavily relies on services. Services do not cost usd.

VincentKeyboard

Member

Re: Lebanese lira to USD exchange

@infiniteloop I don't think increasing salaries to match dollars is the way to go. Maybe successful businesses can give gradual raises.
Unfortunately, after looking at the income statement with the company accountant yesterday, the company I work for is very unlikely to give me a raise in the next two years. We lost all our clients due to quarantine.

The real fix is to bring down market prices to match purchasing power.

NuclearVision

Member

Re: Lebanese lira to USD exchange

@infiniteloop I don't think increasing salaries to match dollars is the way to go. Maybe successful businesses can give gradual raises.
Unfortunately, after looking at the income statement with the company accountant yesterday, the company I work for is very unlikely to give me a raise in the next two years. We lost all our clients due to quarantine.

The real fix is to bring down market prices to match purchasing power.

hey man, just hang in there, the quarantine is just temporary, hopefully you will get your clients back and get a raise!

In all honesty, I think there's a positive side for this crisis, which is it definitely won't last forever, when things get really bad, it means they're on track to getting fixed!
Keep your hopes high.

TheIlluminative

Member

Re: Lebanese lira to USD exchange

Kabir ya Nuclear Vision :)

VincentKeyboard

Member

Re: Lebanese lira to USD exchange

In all honesty, I think there's a positive side for this crisis, which is it definitely won't last forever, when things get really bad, it means they're on track to getting fixed!
Keep your hopes high.

Thank you. I think the positive thing about this crisis is that it was the nudge people needed to understand their surroundings and how different economical aspects of different domains and industries relate to each other.

kareem_nasser

Member

Re: Lebanese lira to USD exchange

In all honesty, I think there's a positive side for this crisis, which is it definitely won't last forever, when things get really bad, it means they're on track to getting fixed!
Keep your hopes high.

Thank you. I think the positive thing about this crisis is that it was the nudge people needed to understand their surroundings and how different economical aspects of different domains and industries relate to each other.

A nudge is too simple, i would say stumble and fall for some to get it.

But i like your spirit guys! Kudos!

vengeance666

Member

Re: Lebanese lira to USD exchange

Nobody dreams of having their salaries increased to match the current USD spike. Lots of companies are selling their products based on the "market price" and paying their employees on 1500. It's a dream come true for some pigs, especially factories who export and businesses who have a big client base in Lebanon (food manufacturers for example). Huge cut on labor expenses (imagine saving what's worth of 50k dollars a month in salaries while still having the exact same labor force), massive increase in profits (selling older stocks, basically free labor and increase of product price to match the current inflation). And well on the other side there is the struggling businesses who will eventually go bankrupt if this goes on much longer.

nefe_lpmk

Member

Re: Lebanese lira to USD exchange

Nobody dreams of having their salaries increased to match the current USD spike. Lots of companies are selling their products based on the "market price" and paying their employees on 1500. It's a dream come true for some pigs, especially factories who export and businesses who have a big client base in Lebanon (food manufacturers for example). Huge cut on labor expenses (imagine saving what's worth of 50k dollars a month in salaries while still having the exact same labor force), massive increase in profits (selling older stocks, basically free labor and increase of product price to match the current inflation). And well on the other side there is the struggling businesses who will eventually go bankrupt if this goes on much longer.

On a positive side, since labor is cheaper. More people will find work and our 30-40% unemployment might get lower after this settles.

Tech Guru

Member

Re: Lebanese lira to USD exchange

Nobody dreams of having their salaries increased to match the current USD spike. Lots of companies are selling their products based on the "market price" and paying their employees on 1500. It's a dream come true for some pigs, especially factories who export and businesses who have a big client base in Lebanon (food manufacturers for example). Huge cut on labor expenses (imagine saving what's worth of 50k dollars a month in salaries while still having the exact same labor force), massive increase in profits (selling older stocks, basically free labor and increase of product price to match the current inflation). And well on the other side there is the struggling businesses who will eventually go bankrupt if this goes on much longer.

The only comment I have been waiting for long for  " owners of companies with money geed mentality"  and they are many here .

Sell at Market Price ( even with old stocks)
Pay Employees @ 1500 LBP
Cut Off 50%  of the Salaries and Got Paid @ 1500 LBP
No one watching

NuclearVision

Member

Re: Lebanese lira to USD exchange

Due Banque du Liban (Central Bank of Lebanon) induced extreme market volatility, the Syndicate of Exchange Houses in Lebanon has announced a 2 day strike, with licensed exchange houses closed until Monday April 27, 2020.
Simultaneously, Banque du Liban revised the Parallel Market Rate to a new all-time record of 3,625, up from 2,600, a jump of 1,025 Lebanese Lira since the last Parallel Market Rate was set.
Day 40 of State of Full Mobilization for COVID19 Pandemic.

Is this true?

ironman

Member

Re: Lebanese lira to USD exchange

Due Banque du Liban (Central Bank of Lebanon) induced extreme market volatility, the Syndicate of Exchange Houses in Lebanon has announced a 2 day strike, with licensed exchange houses closed until Monday April 27, 2020.
Simultaneously, Banque du Liban revised the Parallel Market Rate to a new all-time record of 3,625, up from 2,600, a jump of 1,025 Lebanese Lira since the last Parallel Market Rate was set.
Day 40 of State of Full Mobilization for COVID19 Pandemic.

Is this true?

Yes

DNA

Member

Re: Lebanese lira to USD exchange

If someone needs to pay old bonds which are in usd legally speaking do they need to be paid in usd or can be paid in official usd to lbp rate if legal action is taken?

NuclearVision

Member

Re: Lebanese lira to USD exchange

today i was at the bank, a guy with car loan was asking, she said you need to pay usd unless you get some kind of special approval from the bank.

DNA

Member

Re: Lebanese lira to USD exchange

Thanks for your answer but the payments aren't in a bank its a regular home appliances store, its actually my friend who doesn't wanna pay  because the items he got like a year  ago and now the price is like too much but isn't sure if legally he will be forced to pay in USD or what, if anyone can give insight on this

in any case it is crazy if you think of it you you owe a store like 6K in home appliances and now your 200$ a month payment is like 800,000 which most people can't afford. and the store needs like 800,000 a month lol so the appliances he got are worth 24,000,000 lol. legally he should pay in official usd to lbp i think since the economy is shit and companies should take some loses not just individuals.