The State of the Lebanese Pound

I

illusion84

Member
I got higher rate at 7 % few months back for 18 months but I refused to convert.

Depends on the amount they give 5% now.
I am not giving cash I am converting existing account from L.L to dollars.
2 years fixed , I don’t need to use them now. but the only plus is shielding it from devaluation .
Of course I keep 3 years budget in L.L.

It is a tricky decision in the unknown.
Personally I will go for it; make sure that they pay the interests in a separate account so that you can use it during this period.
 
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  • LEBANESE-CIA

    LEBANESE-CIA

    Legendary Member
    Personally I will go for it; make sure that they pay the interests in a separate account so that you can use it during this period.
    I asked that , they don’t do it. Interest goes in the same account.
    In the present situation if I take my money in L.L and go to exchange it I lose 40 % at the secondary market. That is over half billion In L.L. ... this is criminal we worked hard overseas to get ponzi back home !!!!! May they rot in hell oul inshallah.
     
    dyyyy

    dyyyy

    Well-Known Member
    I'm not sure a 2 year freeze is "too good to be true". 2 years is a lot of time, and I've heard it being proposed to depositors before.
    The only con is the obvious one: you can't use the money until it's "thawed". Otherwise, the value will be preserved regardless of what happens with the official rate, and it was made clear the other day by the central bank (I think) that forcing depositors' accounts from USD to LBP is out of the question.
    Yes but think about it 2 years you converted your money to $ at 1515 while the rate now and probably for a while is 2500,
    It's like giving you 40% interest if you freeze them for 2 years.

    On existing account in L.L ( big amount)
    What are you thinking? What are the pros and cons in that?
    That's the problem I have no idea what they're planning, I can't see any disadvantage of not doing it, it's just fishy 😄
     
    LEBANESE-CIA

    LEBANESE-CIA

    Legendary Member
    Yes but think about it 2 years you converted your money to $ at 1515 while the rate now and probably for a while is 2500,
    It's like giving you 40% interest if you freeze them for 2 years.


    That's the problem I have no idea what they're planning, I can't see any disadvantage of not doing it, it's just fishy 😄
    Kel shi fishy it seems , we can’t trust the crooks anymore.
    Yes I agree with the above, it is like getting around 30% yield per year in relation to the new present exchange rate (2500).
    Maybe a bank is desperate to freeze depositors assets because he can’t handle liquidity. Just a maybe, oR maybe it is another mini ponzi ...
     
    TayyarBeino

    TayyarBeino

    Legendary Member
    I have been informed by bank manager if I am willing to covert my L.L to dollars at a rate of 1517
    But he requested to freeze them for 2 years period and at 5% on the dollar.

    What do you think guys. Knowing the official lira price will devaluate and become like the secondary market price.
    my friend converted his account in bank Audi at the rate of 1540 for one year At 3%
     
    TayyarBeino

    TayyarBeino

    Legendary Member
    and say say no dollars$$$...

    @mzbeeb​

    ·
    7h

    2282 مليون و300 الف دولار باعها مصرف لبنان الى المصارف في يوم واحد فقط (الاثنين 30 اذار 2020). وفي المقابل، اعلن ميشال مكتف امس ان شركته التي تستحوذ على نصف عمليات شحن الدولار من الخارج مستمرة في عملها كالعادة.

    Image


    ++++
    المصارف تكذب كالعادة، وتتذرع باقفال المطار والحجر المنزلي للامعان في سرقة الودائع وحرمان اصحابها منها. فاين تذهب كل هذه الدولارات؟ ولمصلحة من؟
     
    Covadis

    Covadis

    New Member
    correct thread title: "Lebanese Lira" not "Lebanese Pound" ... it's emotional
     
    Covadis

    Covadis

    New Member
    does Berri or HA or FPM or FM or LF or Kataeb or Jumblat (whatever Lebanese political drug you're addicted to),
    realize that the degradation of our beloved Lira is a direct evidence of their political failure ? and an evidence that the architecture of
    the current Lebanese political system is a complete failure ?
     
    Orangina

    Orangina

    Legendary Member
    does Berri or HA or FPM or FM or LF or Kataeb or Jumblat (whatever Lebanese political drug you're addicted to),
    realize that the degradation of our beloved Lira is a direct evidence of their political failure ? and an evidence that the architecture of
    the current Lebanese political system is a complete failure ?
    السؤال موجه الي؟
     
    dyyyy

    dyyyy

    Well-Known Member
    Some things to be careful about from this decision (Aside from the obvious) :

    - People who have debt will not benefit from this

    - The banks will decide the exchange rate which will be a loophole for parties to benefit only their people (and keep these people begging for their warlords)

    - We're basically printing money and giving them to them , so what will happen is these people will be happy to get their dollars at 2500L.L. and after a month the dollar value will be 4000L.L

    - Since these people will have to close their accounts, we're basically removing them from the whole financial system. (In some countries, people are obliged to have a bank account, here we're actively asking people to get out from this system)
     
    F

    frp

    New Member
    The Lebanese government “may be” making a detrimental “mistake” by not considering one measure that could relieve the Lira/USD crisis, do away with the crippling Dollar “peg”, and keep inflation at bay. The billions of dollar reserves used to uphold the peg could be put to “better use”:

    Disband the Lebanese Lira (not forever, mind you!) and make the US Dollar the national currency, as they did and do in Ecuador, Panama, El Salvador, Puerto Rico, Zimbabwe, for instance. Even Lichtenstein uses the Swiss Franc as official currency. Even the former Yugoslavia introduced the Deutsch Mark as national currency when their currency was obliterated.

    Given the fact that Lebanon has exhausted all of its monetary policy, this could tackle one major problem of the crisis.

    One “drawback” of such a solution is that a country gives up its ability to control monetary policy. Given the fact that Lebanon has not had a good track-record, this may be desirable? Dollarized economies (i.e. taking the USD as the national currency) can no longer print money to bail out or finance unproductive, wasteful or corrupt operations. That may help Lebanon in getting on the “right path”.
     
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