The Lebanese Lira exchange rate on the black market for today, April 18, 2023, is 1 USD = 97,300 LBP. As Lebanon deals with economic challenges, the focus shifts to the latest news concerning municipal elections and the livelihood support program for the Internal Security Forces (ISF).
The Lebanese Lira: Is the Currency Beyond Redemption?
Lebanon’s national currency, the Lebanese Lira, has experienced a massive loss of value, with experts believing there is no hope for its recovery. The lira, once pegged at 1,500 to the dollar for 22 years, has now lost 98% of its value since the beginning of Lebanon’s economic crisis. The loss of confidence in the lira has led to an increased demand for dollars, resulting in a phenomenon called “dollar addiction.”
This situation has created a socio-economic divide between USD holders and those with incomes in the Lira. Experts argue Lebanon needs a new exchange rate regime to end the chaos. Some suggest a “hard peg” like dollarization, where the lira is completely replaced by the US dollar or a currency board that introduces a new national currency backed by foreign exchange reserves. Although relinquishing a national currency is not ideal, it may be necessary given Lebanon’s ongoing crisis.
However, experts caution that any hard peg options must be accompanied by a comprehensive reform plan, including a complete restructuring of the banking system. Furthermore, the success of any monetary regime relies heavily on political will, which seems to be lacking in Lebanon at the moment.
Municipal Elections Postponement and Possible Solution
On Tuesday, Parliament postponed municipal elections for up to a year due to concerns that the government would be unable to secure the necessary funding in time. Some MPs blamed caretaker Prime Minister Najib Mikati for the postponement. Mikati responded that he would not have attended the session if he had not wanted to postpone the elections.
The Cabinet will convene to discuss possible solutions to the municipal elections issue. Mikati mentioned that elections might be held on May 21 instead of May 7. The Cabinet will also discuss increasing salaries and transport allowances for public and private sector employees.
US and UN Launch Livelihood Support Program for ISF
The U.S. Embassy in Beirut and the United Nations have initiated cash distributions under the “Livelihood Support Program.” The first tranche of this program, valued at $16.5 million, will provide temporary financial support to Internal Security Forces (ISF) personnel. Eligible ISF members will receive $100 per month for six months.
The program aims to alleviate some of the economic hardship faced by ISF personnel, who are making significant efforts to serve their country and maintain security and stability. The United Nations Development Program (UNDP) works with a nationwide financial service provider to disburse funds to eligible ISF members. Text messages will notify ISF members of their disbursements starting April 18.
The Lebanese Armed Forces will also benefit from this U.S.-sponsored, UNDP-implemented program, with initial disbursements beginning soon. The cash disbursements are a demonstration of the United States’ ongoing commitment to supporting the ISF’s efforts to uphold the rule of law and defend the people of Lebanon.
As the Lebanese Lira exchange rate on the black market remains uncertain, Lebanon’s future depends on the outcomes of political meetings and the success of support programs like the Livelihood Support Program for the ISF. Stay informed and engaged with the latest news about Lebanon’s economy and politics by following our updates.
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Karim
