During January, the Lebanese pound (LBP) continued to devalue, with the exchange rate in the black market jumping from 42,000 LBP to 62,000 LBP to the dollar. Such news has sparked discussions about the potential manipulation of the black foreign exchange market. Some believe that money exchangers and merchants have been manipulating the exchange rate to gain financial benefits from the quick shifts in the rate.

LIMS explained that money exchangers are not responsible for the depreciation of LBP; they simply mirror the reality of the market. The depreciation is a logical outcome, when printing a very large quantity of LBPs. Money in circulation increased by 20-fold since the beginning of the crisis in 2019, to finance government expenses and reimburse the central bank’s debt to the financial sector. LIMS argued that the Lebanese government is neither undertaking any reforms, nor halting its inflated expenses. In addition, there is denial of the banking losses to avoid the banking industry’s liquidation. Therefore, these losses are funded by printing LBPs. So long as this approach continues, the collapse of the LBP will persist. Also, LIMS pointed out the loss of the central bank’s effective influence on the market, due to the rapid depletion of reserves.

LIMS expects that Lebanon will face a deteriorating economic situation, including a collapse in the exchange rate and higher inflation in 2023. The exchange rate’s collapse caused the LBP to become unpopular among residents, and the economy is turning towards dollarization.  

LIMS Media Interviews:

• Dollar Accelerates The Collapse…To Stop Printing For The Lebanese Pound’s Safety, January 28, 2023: Lebanese Forces, Article AR 
• Lebanon…An urgent Meeting To Investigate The Manipulation Of The Exchange Rate Of The Lebanese Pound, January 28, 2023: Sada El Balad, Article AR 
• Where Is Lebanon Politically And Economically On The Eve Of 2023? Part 21…Director Of The Lebanese Institute For Market Studies, Dr. Patrick Mardini: Reform Begins With Stopping The Collapse Of The Exchange Rate Of The LBP First Through The “Establishment Of A Currency Board”, January 25, 2023: Safir Al Chamal, Article AR
• What Is The Solution To The Collapse Of The Exchange Rate Of The LBP? January 25, 2023: RLL, Radio Interview AR  
• How To Stop The Deterioration Of The LBP And The Rise In The Price Of The Dollar With The Economic And Legal Researcher Garabed Fakrajian, January 25, 2023: VDL, Radio Interview AR 
• What Are The Secrets Behind The Insane Rise Of The Dollar’s Value? With Economic Expert Dr. Patrick Mardini Discussing Politics In Detail, January 24, 2023: VDL, Radio Interview AR 
• The Dollar At 30,000 Lebanese Pounds? This Is What Dr. Mardini Told HADATH Online, January 24, 2023: HADATH Online, Article AR 
• The Dollar Towards 60,000 LBP, OTV, January 24, 2023: TV Interview AR 
• Consequences Of The Dollar’s Rise Above 50,000 Lebanese Pounds With Economic Expert Patrick Mardini, January 21, 2023: VDL, Radio Interview AR 
• What Was The Exchange Rate Of The “Black Dollar” Today? January 17, 2023: SBI, Article AR 
• Ambiguity of The Central Decisions Increases The Sharp Fluctuations In The Dollar Exchange Rate, January 16, 2023: OTV, TV Interview AR 
• Printing 7.7 Trillion Lebanese Pounds In One Month…They Print It Like Paper Without Stopping, January 4, 2023: SP Today, Article AR 
• Jabai And Mardini Assess The Economic Situation And Expectations For 2023 And Focus On The Political Factor Of The Solution And The Need To Launch A Recovery Plan, January 3, 2023: Addiyar, Article AR
• Economic Vision 2023: Four Key Challenges, January 3, 2023: Lebanon 24, Article AR
• 3 Factors That Will Raise The Pace Of LBP printing In 2023! January 2, 2023: Lebanoneconomy, Article AR
• Economic Expert Patrick Mardini Discusses The Latest Decision Of The Central Bank Of Lebanon, January 2, 2023, Al Jadeed: TV Interview AR