Lebanese Pound (LBP) (LBP) exchange-rate chart to US Dollar (USD)

The LBP/USD exchange rate represents the value of the Lebanese Pound relative to the US Dollar, quoted as the number of Pounds required to purchase one Dollar. This pair is primarily used by Lebanese businesses, importers, and individuals who rely on the dollar for transactions, savings, and remittances. An appreciation of the Lebanese Pound (a lower LBP/USD rate) would mean the Pound strengthens, making imports cheaper and easing inflation, but such movement is rare given the country's ongoing financial turmoil.

The structural drivers of LBP/USD are dominated by Lebanon's monetary policy under Banque du Liban (BDL) and the US Federal Reserve. Historically, the Pound was pegged at 1,507.5 LBP per USD for decades, but since 2019, a severe economic and banking crisis has led to multiple exchange rates, including a parallel market rate far above the official peg. Key factors include Lebanon's massive fiscal deficit, loss of confidence in the banking system, political instability, and the central bank's depletion of foreign reserves. In contrast, the US dollar benefits from the Fed's monetary policy, US economic growth, and its status as a global safe-haven currency. Inflation differentials, capital flight, and remittance flows also heavily influence the pair.

Over the past five years, LBP/USD has experienced extreme depreciation. From the long-standing peg of 1,507.5, the parallel market rate surged past 10,000 in 2020, exceeded 30,000 in 2021, and reached over 100,000 by 2023. The official rate was adjusted to 15,000 in early 2023, but the gap with the parallel market remains wide. The crisis has been driven by the collapse of the banking sector, political deadlock, and the 2020 Beirut port explosion. Without a comprehensive reform program, the exchange rate remains highly volatile and subject to multiple tiers, making it difficult to establish a single market-clearing rate.