Lebanese pound

Evolution of the LBP Exchange Rate

The Lebanese pound (LBP) exchange rate has experienced significant volatility and depreciation over the years. In the early 1990s, after the Lebanese Civil War, the LBP exchanged at around 1,500 LBP per US dollar. However, due to economic and political uncertainties, the exchange rate deteriorated, reaching around 15,000 LBP per US dollar by the mid-1990s. In recent years, the exchange rate has further deteriorated, with a current rate of approximately 15,000 LBP per US dollar.

Variations in the LBP Exchange Rate

The LBP exchange rate has exhibited high variations over time. Factors such as political instability, economic challenges, and external shocks have contributed to these fluctuations. Additionally, the dependence on imports, a significant trade deficit, and a large public debt burden have put pressure on the exchange rate.

Significance of LBP in the Global Economy

The Lebanese pound does not have significant importance in the global economy. It is a relatively small currency and is mainly used within Lebanon. The LBP is not widely traded internationally, and its exchange rate fluctuations do not have a significant impact on global financial markets.

Shocks Experienced by LBP and Correlation with Other Currencies

The LBP has experienced various shocks, including political instability, regional conflicts, and economic crises. These shocks have negatively impacted the exchange rate and increased its volatility. The correlation of the LBP with other major currencies is generally low, as Lebanon's economic and financial situation is unique and heavily influenced by domestic factors.