The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Lebanese pound sees end of dollar peg

The six exchange-rate system is now untenable, with the currency losing more than 50% of its value since October, but analysts say floating the currency will cause more pain without IMF support.


Masked men recently bore a coffin adorned with the Lebanese pound in the city of Zahlé as people protested against years of corruption and mismanagement that have led Lebanon to economic collapse. In Sidon, people waved flags atop their cars on Labour Day.

The Lebanese pound, which has been pegged to the dollar since 1997, has lost 50% of its value since October, causing food and essential goods prices to soar. It is the latest sign that the government’s inability to enact reforms is having real consequences for Lebanon’s population.

On April 30, prime minister Hassan Diab published a 53-page financial recovery plan that, alongside structural reforms and changes to the banking system and central bank, includes allowing the Lebanese pound to adjust to market rates, estimated to be L£3,500 to the dollar.

“The peg to the US dollar that has been maintained over decades is now impossible to restore and must be revamped,” the plan says. “For years the lack of competitiveness of the Lebanese companies has prevented the emergence of a productive and diversified economic base in Lebanon and encouraged the consumption of imported goods through artificially inflated purchasing power.”

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?