Lebanon’s exchange rate soars to 100,000 LBP to the dollar, currency loses 98.5% of pre-crisis value

Lebanon's unofficial exchange rate soared to reach 100,000 LBP to the dollar on Tuesday morning; this means the currency lost around 98.5 percent of its pre-crisis value in 2019 in less than four years. 

In simple terms, the inflation of goods imported in dollars, disregarding global inflation and other market factors, means that the price of such goods would be 6666% higher in the local currency.

Lebanon's largest banknote in circulation, the 100,000 LBP bill, which used to be worth around $66.67, is now worth just $1. 

The official exchange rate before the crisis in 2019 was around 1500 LBP to the dollar. 

The further depreciation is a new blow to the country's economy with severe implications for the average Lebanese citizen. 

Lebanon has been struggling with a financial crisis for several years, with high inflation rates, political instability, and a deteriorating economy.

The reasons for this are complex, but they are mainly due to a combination of political instability, corruption, and mismanagement of the economy. The COVID-19 pandemic and the explosion at the Beirut port in August 2020 have only exacerbated the situation.