BEIRUT: The Lebanese pound fell on the black market Tuesday, trading at LL12,750 against the dollar.

Exchange dealers were buying the dollar for LL12,700 and selling it for LL12,800. The greenback traded for LL12,650 Monday.

The Lebanese pound has lost nearly 90 percent of its value since the slow onset of the economic crisis in October 2019, and hit its record low of LL15,100 to the dollar two weeks ago.

Over 60 percent of the population in Lebanon now lives below the poverty line, as inflation is rampant, subsidized products are diminishing, unemployment is on the rise and the coronavirus pandemic remains widespread.

The Central Bank is set to launch another currency exchange platform next month in a bid to control the exchange rate and the opaque black market. It had launched the Sayrafa electronic exchange platform in the summer of 2020 with the same aim, and set an exchange rate of LL3,950 which did not hold as the black market rate peaked at above LL9,000 in July.

This latest platform, set to launch on April 16, will see commercial banks acting as exchangers as well, in addition to licensed exchangers.

However, economists and financial experts have said that for this new platform to succeed, a massive cash injection is needed from commercial banks that will come from the Central Banks foreign currency reserves.

Economists tend to agree that there is no need to stick to the 15 percent mandatory reserves at BDL since the size of the deposits have declined dramatically. Many, however, insist that in the end, only a government of experts with wide powers can rescue Lebanons economy and help the local currency regain some of its value.

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