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#901 2 weeks ago

M03
Member

Re: Lebanese lira to USD exchange

cryptocurrency on the way

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#902 2 weeks ago

user
Member

Re: Lebanese lira to USD exchange

Nothing beats good old fashioned gold and silver coins. It is trusted everywhere with little controversy, lasts forever, no rust no nothing and no hacks.

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#903 2 weeks ago

Guitaret
Member

Re: Lebanese lira to USD exchange

AVOlio wrote:

This should happen here in Lebanon.
Cash should cease to exist and cards should be encouraged by the government and central bank to each and every shop starting from the neighborhood dekkene!
.

Dude they are doing that now to steal people money and merchants will not take virtual/fake money using any card as they cannot do anything with it (Literally). Some gas stations stopped accepting cards altogether yesterday.

user wrote:

Nothing beats good old fashioned gold and silver coins. It is trusted everywhere with little controversy, lasts forever, no rust no nothing and no hacks.
.

King Georges coin is now 460$ which is ~3,680,000LL, none of these currencies can be withdrawn from banks now (considering ~2M per month is for your daily expanses). Good luck buying those.

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#904 2 weeks ago

Guitaret
Member

Re: Lebanese lira to USD exchange

Update:

بعد تعميم مصرف لبنان القاضي بإلزام مستوردي المحروقات الدفع النقدي، اتخذ موزعو المحروقات في لبنان قرارا بتوقيف اعتماد البطاقات المسبقة الدفع على المحطات.

<admin edit: adding a source>

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#905 2 weeks ago

wollyka
Member

Re: Lebanese lira to USD exchange

Guitaret wrote:

Update:

بعد تعميم مصرف لبنان القاضي بإلزام مستوردي المحروقات الدفع النقدي، اتخذ موزعو المحروقات في لبنان قرارا بتوقيف اعتماد البطاقات المسبقة الدفع على المحطات.

It's just the beginning, others will follow such as supermarkets, etc..

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#906 2 weeks ago

AVOlio
Member

Re: Lebanese lira to USD exchange

Guitaret wrote:

Dude they are doing that now to steal people money and merchants will not take virtual/fake money using any card as they cannot do anything with it (Literally). Some gas stations stopped accepting cards altogether yesterday.


They cannot do anything because not all places have pos machines, they're not very common.
But imagine if EVERY business small or big have pos machines and accept cards, then they can use them everywhere.

That's the case in Venezuela now where every business, starting from a small hot dog kiosk on the street has a pos machine.

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#907 2 weeks ago

jsaade
Member

Re: Lebanese lira to USD exchange

also at what rate will POS charge you if your card/account is in USD not LBP.

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#908 2 weeks ago

infiniteloop
Member

Re: Lebanese lira to USD exchange

AVOlio wrote:
Guitaret wrote:

Dude they are doing that now to steal people money and merchants will not take virtual/fake money using any card as they cannot do anything with it (Literally). Some gas stations stopped accepting cards altogether yesterday.


They cannot do anything because not all places have pos machines, they're not very common.
But imagine if EVERY business small or big have pos machines and accept cards, then they can use them everywhere.

That's the case in Venezuela now where every business, starting from a small hot dog kiosk on the street has a pos machine.

Most taxis companies in Europe have POS in every car, dunno why here banks didn't promote them before

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#909 2 weeks ago

user
Member

Re: Lebanese lira to USD exchange

Basically Salameh wants to keep the money with him, and he wants people to play with the numbers in the banks. His plan is aimed at regaining control of the market that became a cash market, but it seems he is only pushing people more and more away from him, his banks and our currency.

Guitaret wrote:
user wrote:

Nothing beats good old fashioned gold and silver coins. It is trusted everywhere with little controversy, lasts forever, no rust no nothing and no hacks.
.

King Georges coin is now 460$ which is ~3,680,000LL, none of these currencies can be withdrawn from banks now (considering ~2M per month is for your daily expanses). Good luck buying those.

What about silver? When there is a need there will be a way. Frankly I hate the king george coin, I don't know why it is the only coin in Lebanon. I prefer the Canadian mapple leaf myself, more gold in it and less impurities.

Last edited by user (2 weeks ago)

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#910 2 weeks ago

xazbrat
Member

Re: Lebanese lira to USD exchange

jsaade wrote:

also at what rate will POS charge you if your card/account is in USD not LBP.

I refuse to use mine as they are charging at 1500ish---if they start using a model where the current exchange rate can be used, then I will use credit cards again.  Really stupid not to encourage the use of credit/debit cards during a pandemic too---BDL could have been on top of this 7 months ago, but the institution is a failure when it comes to innovation and consumer friendly options.

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#911 2 weeks ago

VincentKeyboard
Member

Re: Lebanese lira to USD exchange

Our company accountant claims that the root cause of this dilemma is that it was decided last year that 1500 was a too low price for 1 USD and that it should increase but things got out of hand in terms of food prices. And he feels that the current 8000 is too low still. Who in the right mind thinks that "One" of a foreign currency is worth over a "thousand" of a native currency? Frankly, I am upset at him.

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#912 2 weeks ago

AVOlio
Member

Re: Lebanese lira to USD exchange

VincentKeyboard wrote:

Our company accountant claims that the root cause of this dilemma is that it was decided last year that 1500 was a too low price for 1 USD and that it should increase but things got out of hand in terms of food prices. And he feels that the current 8000 is too low still. Who in the right mind thinks that "One" of a foreign currency is worth over a "thousand" of a native currency? Frankly, I am upset at him.

No one individual can decide what is the value of one currency compared to another.
Only the law of supply and demand does.
Just like commodities and items, a currency can also be considered as a commodity.
If your country is a producer of a certain commodity and if people all around the world are interested in buying this commodity that you're producing, then they will go ahead and exchange their own currency to buy our own currency, in order to eventually buy the desired commodity that you are producing.

But since we do not produce anything, and we do not have enough demand for our currency by outsiders, because no one is interested in buying something we produce, then the demand of our currency will be low, therefore it has no value against other currencies.


I kind of agree with the accountant regarding the fact that it was decided a year ago and maybe more that 1500 lbp is very low for a dollar, because I remember many people online, especially here asking for help about their usd loans, where they have been contacted by their banks and they've been told they would get big discounts if they continued paying in dollar and stuff like that.
The banks knew this would happen all along and they tried acquiring their given loans as much as they could.

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#913 2 weeks ago

user
Member

Re: Lebanese lira to USD exchange

You know, I used to say that Lebanon does not produce anything, but mostly the root cause is we spend a lottt there. Multiple visits between the day3a and the city by car each week if not each day, every person has their own car. In advanced countries we cannot afford that! In Canada you are highly discouraged from getting your own car with high taxes, big insurance costs and complicated licensing. And we simply travel by bus, same bus shapes as in Lebanon, all Lebanon needed to do was created official bus stops and instructions... It's a really dumb problem to have for 30 years.
Traveling each year abroad, also no one does that. In the US and Canada people mostly travel internally, travels to Europe are rare.

Lebanon has a lot of good affordable services, medical care, hotels(I have not tried them personally) we have agriculture with potential to easily expand it. We can expand services now since work is mostly remote to include not only remote software development, but remote private tutoring, remote psychotherapy(fin fact, hourly rate of my therapist over the internet is 130 usd per hour, but he is good and the Lebanese one I tried was shit) remote design. Maybe start a cartoon studio and make cartoons and movies(why not?)

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#914 2 weeks ago

NuclearVision
Member

Re: Lebanese lira to USD exchange

I would giveaway my car if they make a respectable, safe, timely and hassle free transportation system.
But right now, if i don't drive to work, i will have to take 2 services and 2 buses + wait and spend a lot.
Its cheaper but also easier by car.

I second what Avolio said, as long as we don't produce anything, and begging for hard currency no longer works, our currency is bound to keep losing value.

I read today that the minister of agriculture decided to allow poultry imports, since farmers were not selling their chicken at current prices, it is then that i realized that we always blame politicians, but in fact, the lebanese citizen is the most corrupt.

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#915 2 weeks ago

user
Member

Re: Lebanese lira to USD exchange

Yes I think as the government gets weaker, people should organize into economic groups by themselves. And really organize well. We can have a private area based digital agricultural market masalan. You can try and hold meetings in your own villages and setup a bus route, and you all agree to hire someone who owns a bus, pay him a fixed rate per month all of you in exchange for him doing 2 trips a day (or 1 trip a day, whatever) things like that.

Imagine being the prime minister, setting up laws, and then the people below you are too corrupt or incompetent to actually practice that law. You're pretty weak at that point.

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#916 2 weeks ago

Tech Guru
Member

Re: Lebanese lira to USD exchange

I will summarize some key points that might be missing , and the repercussions of such decisions.

The last circular No. 573 by which the Banque du Liban imposed on importing companies to pay the amounts due to them to the bank in Lebanese pounds in cash, and not by means of bank checks or transfers, prompting companies and institutions to suspend accepting bank cards and require consumers to pay in cash only. The first of these signs appeared at gas stations, many of which announced that payments through bank cards would not be accepted, in order to obtain cash in pounds, in line with the circular of the Banque du Liban.

As for the decision of the Banque du Liban to set a ceiling for bank withdrawals from it in lira, and to impose fees and interest on withdrawing any monthly amounts exceeding 5 billion pounds for each bank, it prompted the banks to throw the fire ball in the range of banking clients, so the ceilings for cash withdrawals were reduced, to avoid having to withdraw cash from a bank Lebanon surpassed the estimated amount by 5 billion lira. It is evident that the measures taken by the banks to reduce the ceilings of cash withdrawals and limit them to bank cards are reflected in the scarcity of cash liquidity in the hands of citizens.

Away from the objectives of the Central Bank of the circular and the decision, which is summarized by reducing the level of liquidity in Lebanese pounds, and thus reducing the demand for the dollar, and at the expense of deepening the social crisis, the question remains, how will the mechanism of bank withdrawals become? In what cases can bank cards be used?

Many banks have begun to reduce their ceilings for cash withdrawals on dollars and pounds through ATMs, whether for individuals or companies. Among those banks, Fransabank, Bank of Beirut, the Arab Countries, the Lebanese Swiss Bank, the Mediterranean Bank, the Lebanon Overseas Bank and other banks, it is expected that the reduction process will apply to the rest of the banks during the next few days.

The constant in the new procedures is that cash withdrawals on the fund (or countires) in banks will stop completely, whether from the lira or dollar accounts, and cash withdrawals will be restricted to ATMs only. However, according to ceilings that are much lower than what was previously permitted. For example, banks reduced cash withdrawals in dollars (that is, from dollar accounts) to less than $ 1,000 a month. The ceiling is reduced according to each bank, provided that the withdrawal exchange rate remains 3,900 pounds, in line with BDL Circular No. 151. As for withdrawals from accounts in Lebanese pounds, their ceilings are also reduced to less than half, as the ceiling set at most banks does not exceed 2 million pounds per week. .

It is striking that the low ceilings for cash withdrawals include large and small depositors, so there is no differentiation between them in terms of the size of the withdrawals. Likewise, owners of domiciled accounts, public sector employees and members of the security services will have to withdraw their salaries through ATMs, and not from bank funds.

By reducing the ceilings for withdrawals, banks tend to compel customers to use electronic bank credit cards and debit cards in purchases from the Lebanese market. Therefore, banks are expected to transfer the installments of their borrowers from one bank to another according to the requirements, in order to prevent the cash withdrawal from the lira.

The main problem facing the process of using bank cards is to determine the exchange rate of the dollar in bank accounts. Al-Modon learned that a number of banks, including Byblos Bank, allow customers to transfer services from one dollar to one dollar according to the exchange rate of 3900 pounds to the dollar, which facilitates the process of using bank cards in purchases and dispensing with cash, if the commercial institution provides the electronic payment mechanism.

But with the banks that have not introduced the conversion service from dollars to pounds according to the price of the platform, the holders of their dollar accounts must use their cards according to the exchange rate of 1505 pounds to the dollar in purchases priced according to the black market exchange rate for the dollar, and these will almost completely gnaw their deposits.

As for the institutions, shops and companies that refuse to pay through bank cards, the citizen must then dispense with their products, due to his inability to pay in cash, which is what the Banque du Liban targets through its circulars and decisions, i.e. reducing consumption, even if this leads to a hitting the citizen's living capacity and creating more recession.

The objective of the Central Bank of Lebanon through these measures may be achieved temporarily and calm the rise of the dollar. However, this will not succeed in the medium term. All these measures ultimately only lead to more inflation. The Bank of Lebanon has pumped the lira into the market in huge quantities in light of the weak production, and comes today to withdraw the pound, to relieve pressure on it and reduce the dollar. The market is through imported goods, the price of which will be charged in lira in cash. The result will be a vicious circle. The measures will only buy time pending the formation of a government and finding solutions and exits to the crisis.

Similar to the current existence of a cash dollar in the market and a lollar (or bank dollar), a cash lira and a bira (or bank lira) will be introduced. As with the lollar, so is the bira. Their value is between 30 and 60 percent less than the monetary dollar and the pound.

As long as the Banque du Liban imposed on importers to pay about 85 percent of the value of imports in cash, and not through transfers or checks, this means that a difference will occur in prices between the cash and the pound in banks, similar to the difference between the cash dollar and the bank dollar, or what is known as "lollar". I  expect that the value of the lira in cash (1 lira) will be approximately 1.25 liras in the bank. Imposing payment on importers in lira in cash would create a sudden and enormous demand for lira in cash, which means that the lira “cash” is no longer equal to that deposited in banks.

It is likely that a banking source will deal in the near term with lira checks, with a discount of between 15 to 20 percent of them, just as is currently the case with dollar checks.

 

Last edited by Tech Guru (2 weeks ago)

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#917 2 weeks ago

NuclearVision
Member

Re: Lebanese lira to USD exchange

funny, artificial demand for Lira to boost its value.

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#918 2 weeks ago

user
Member

Re: Lebanese lira to USD exchange

Basically the central bank wants to try and eliminate bank deposits as much as he can. I wonder if this will bring down the usd/lira exchange in the black market. He shouldn't be trying to strengthen the lira, making the lira cheap would make our products more competitive. He just needs to reduce the support for imports.

Last edited by user (2 weeks ago)

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#919 2 weeks ago

nuclearcat
Member

Re: Lebanese lira to USD exchange

user wrote:

Basically the central bank wants to try and eliminate bank deposits as much as he can. I wonder if this will bring down the usd/lira exchange in the black market. He shouldn't be trying to strengthen the lira, making the lira cheap would make our products more competitive. He just needs to reduce the support for imports.

Thing of weakening country currency for sake of cheap products - works only if you have import independent produce, where added value is much more than cost of imports.
It doesnt work at all for Lebanon as every industry here is heavily import dependent and near none have high added value manufacturing.

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#920 2 weeks ago

VincentKeyboard
Member

Re: Lebanese lira to USD exchange

Tech Guru wrote:

Similar to the current existence of a cash dollar in the market and a lollar (or bank dollar), a cash lira and a bira (or bank lira) will be introduced. As with the lollar, so is the bira.
 

Why isn't the "bank dollar" called bollar then if the "bank lira" is going to be called bira?

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#921 2 weeks ago

wollyka
Member

Re: Lebanese lira to USD exchange

The decision was reversed?
image.jpg

Last edited by wollyka (2 weeks ago)

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#922 2 weeks ago

rolf
Member

Re: Lebanese lira to USD exchange

user wrote:

And we simply travel by bus, same bus shapes as in Lebanon,

You can't compare buses in Canada with Lebanon. Have you ever taken a minibus ride in Lebanon? You only need to take 2 or 3 to have enough trauma for the whole summer.

I am sure that if we have a bus network in Lebanon with the same coverage and standards that you can expect in Canada, many more will chose to ride the bus instead of their car.

VincentKeyboard wrote:
Tech Guru wrote:

Similar to the current existence of a cash dollar in the market and a lollar (or bank dollar), a cash lira and a bira (or bank lira) will be introduced. As with the lollar, so is the bira.

Why isn't the "bank dollar" called bollar then if the "bank lira" is going to be called bira?

I heard that every sect will be getting their own quota, so you will have mbiras, subiras (maybe they will change the name), shlollars and قlollars.

Every sect will also have their own exchange rate so there will be 54 exchange rates for USD.

Last edited by rolf (2 weeks ago)

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#923 2 weeks ago

anayman_k7
Member

Re: Lebanese lira to USD exchange

wollyka wrote:

The decision was reversed?
https://i.ibb.co/jG0d2Jh/image.jpg

They just said 2 different things in the same time, they said that there is no limits from BDL but they will start getting LBP not in cash fully, so they are urging people to use Cards and Transfers, so they basically confirming the LBP limit but with some sugar on top it

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#924 2 days ago

Tech Guru
Member

Re: Lebanese lira to USD exchange

Agian , I warn selling your USD for LBP now. USD/LBP rate is now below 7000 as a political atmosphere to float a new cabinet formation and prevail a new atmosphere. Personally ,  I don't trust that. Old similar scenarios associated with fake promises happened before. They will collect USD from people , then negative remifications  will happen that will make it rise again.

Lebanon needs the injection of USD 15 billion ,  in any form, to increase USD supply in the economy. This will only happen if a cabinet is formed as soon as possible with practicle and real reshuffle matching IMF and France demands. Otherwise , USD will exponentially incrase against LBP.

Last edited by Tech Guru (2 days ago)

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#925 2 days ago

VincentKeyboard
Member

Re: Lebanese lira to USD exchange

So the complaint was the lack of USD and demand being too high for the supply which eventually inflated the value of the dollar. And now people are rushing to sell enough dollars to deflate its value. The reasoning is that they had enough dollars to begin with but were hiding them from the government, a wise choice if you ask me. So what happens next? The government gets this supply of save/hidden dollars and we fall into an even worse situation?

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