Lebanese pound gains value after donor conference

Black market traders were selling the dollar for LL7,600 and buying it for LL7,500

  
A man wearing a face mask takes Lebanese pound banknotes at a currency exchange shop in Beirut, Lebanon April 24, 2020.

A man wearing a face mask takes Lebanese pound banknotes at a currency exchange shop in Beirut, Lebanon April 24, 2020.

REUTERS/Mohamed Azakir

BEIRUT: The Lebanese pound rose in value against the dollar Monday trading at around LL7,550 a day after an international donors conference raised $298 million in short-term aid.

The aid was promised amid a string of high-profile ministerial resignations that have pushed Hassan Diab’s government to the brink of collapse.

Black market traders were selling the dollar for LL7,600 and buying it for LL7,500. Licensed exchange dealers were selling at LL3,900 and buying at LL3,850 to the dollar.

Nearly a week after the blast the Lebanese pound’s value has fluctuated but has risen since the Aug. 4 explosion when it was trading at LL8,050 to the dollar.

The donor conference promised the aid would go directly to the Lebanese people. The conference's closing statement said, "assistance should be timely, sufficient and consistent with the needs of the Lebanese people."

The conference also asserted that world leaders were committed to supporting Lebanon's long-term economic recovery. The international support generated by the disaster has raised hopes that Lebanon's economy will receive both the short- and long-term help it desperately needs.

The Lebanese pound has lost some 80 percent of its value.

In the aftermath of the explosion, Banque du Liban announced that money transfer companies would once again provide dollars. These companies had previously been instructed to convert foreign transfers to pounds at a rate of LL3,800 to the dollar.

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