Worst Currency in the World: Lebanese Pound Exchanges For 100,000 to a Dollar
- The Lebanese currency has fallen to its lowest in years after exchanging for 100,000 to a dollar
- The country is experiencing its worst economic downturn in history, with people taking up arms to free up their funds from the banks
- The banks in Lebanon have been on strike as the central bank governor was accused of fraud and embezzlement
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The Lebanese pound may be rated as one of the worst currencies in the world at the moment.
The currency dropped to a historic low against the dollar on the black market on Tuesday, March 14, 2023.
Source: Getty Images
Citizens adopt dollars to buy essential items
The sad moment came during an economic downturn that saw most of the population slip into poverty.
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The pound is pegged at 15,000 to the dollar and was seen trading at 100,000 against the US greenback, a massive fall from the 1,507 before the economic turmoil of 2019, AFP said.
The pound's market value was around 60,000 to the dollar in late January 2023.
The fall has sparked inflation and price hikes in fuel, food, and other essential items, with supermarkets starting to sell items in dollars.
Lebanese's economic woes have been blamed on the political elites, who have failed to take action.
The country has had no president since last year, and only a caretaker government has been installed amid deadlocks between rival factions.
The country's banks have been on strike since they imposed draconian withdrawal restrictions, which locked depositors' funds, most of whom saw their life savings locked up.
The strike started early last year with a protest by the Association of Banks in Lebanon.
The withdrawal limit has generated public outcry that saw the Lebanese take up arms to lay hands on their funds.
Residents vandalise banks and take up arms to get funds
The banks cover their building with metals from outside while ATMs are vandalised.
In 2022, the International Monetary Fund said it had agreed in principle to provide the country with about $3 billion in loans spread over four years with a condition of implementing reforms.
But government officials still need to implement the changes requested by creditors in return for accessing the emergency loans.
The country's central bank governor, Riad Salameh, is under investigation at home and abroad for suspected embezzlement of millions of dollars.
Naira’s value falls across all foreign exchange markets as CBN finally gives banks directives on old notes
Legit.ng reported that Naira on Monday, 12 March 2023, depreciated against the US dollar at the official and unofficial foreign exchange (FX) markets as the Central Bank of Nigeria finally directed banks to accept old notes.
The Naira's poor performance against the US dollar in the parallel market, Peer-to-Peer (P2P), and Investors and Exporters (I&E) window(the official market).
Data from FMDQ securities where the naira is officially traded showed that its value declined by 17 Kobo or 0.04% against the dollar to settle at N461.67/$1 on Monday, compared with the previous exchange rate of N461.50/$1.
Source: Legit.ng
