The pound or lira ( ar, ليرة لبنانية ''līra Libnāniyya'';
French
French (french: français(e), link=no) may refer to:
* Something of, from, or related to France
** French language, which originated in France, and its various dialects and accents
** French people, a nation and ethnic group identified with Franc ...
: ''livre libanaise''; abbreviation: LL in
Latin
Latin (, or , ) is a classical language belonging to the Italic branch of the Indo-European languages. Latin was originally a dialect spoken in the lower Tiber area (then known as Latium) around present-day Rome, but through the power of the ...
, in
Arabic
Arabic (, ' ; , ' or ) is a Semitic languages, Semitic language spoken primarily across the Arab world.Semitic languages: an international handbook / edited by Stefan Weninger; in collaboration with Geoffrey Khan, Michael P. Streck, Janet C ...
, historically also £L,
ISO code: LBP) is the currency of
Lebanon
Lebanon ( , ar, لُبْنَان, translit=lubnān, ), officially the Republic of Lebanon () or the Lebanese Republic, is a country in Western Asia. It is located between Syria to the north and east and Israel to the south, while Cyprus li ...
. It was formerly divided into 100
piastre
The piastre or piaster () is any of a number of units of currency. The term originates from the Italian for "thin metal plate". The name was applied to Spanish and Hispanic American pieces of eight, or pesos, by Venice, Venetian traders in the ...
s (or ''qirsh'' in Arabic) but because of high
inflation
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...
during the
Lebanese Civil War
The Lebanese Civil War ( ar, الحرب الأهلية اللبنانية, translit=Al-Ḥarb al-Ahliyyah al-Libnāniyyah) was a multifaceted armed conflict that took place from 1975 to 1990. It resulted in an estimated 120,000 fatalities a ...
(1975–1990) the use of subunits was discontinued.
The plural form of
lira
Lira is the name of several currency units. It is the current currency of Turkey and also the local name of the currencies of Lebanon and of Syria. It is also the name of several former currencies, including those of Italy, Malta and Israe ...
, as used in relation to the currency, is either ''lirat'' (ليرات ''līrāt'') or
invariant
Invariant and invariance may refer to:
Computer science
* Invariant (computer science), an expression whose value doesn't change during program execution
** Loop invariant, a property of a program loop that is true before (and after) each iteratio ...
, whilst there were four forms for ''qirsh'': the
dual
Dual or Duals may refer to:
Paired/two things
* Dual (mathematics), a notion of paired concepts that mirror one another
** Dual (category theory), a formalization of mathematical duality
*** see more cases in :Duality theories
* Dual (grammatical ...
''qirshān'' (قرشان) used with number 2, the plural ''qurush'' (قروش) used with numbers 3–10, the
accusative
The accusative case (abbreviated ) of a noun is the grammatical case used to mark the direct object of a transitive verb.
In the English language, the only words that occur in the accusative case are pronouns: 'me,' 'him,' 'her,' 'us,' and ‘the ...
singular ''qirshan'' (قرشا) used with 11–99, and the
genitive
In grammar, the genitive case (abbreviated ) is the grammatical case that marks a word, usually a noun, as modifying another word, also usually a noun—thus indicating an attributive relationship of one noun to the other noun. A genitive can al ...
singular ''qirshi'' (قرش) used with multiples of 100. The number determines which plural form is used. Before
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, the Arabic spelling of the subdivision was غرش (''girsh''). All of Lebanon's coins and banknotes are bilingual in Arabic and French.
Since December 1997, the exchange rate has
been fixed at LL 1,507.50 per
US dollar
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
.
However, since the
2020 economic crisis in Lebanon exchange at this rate is generally unavailable, and an
informal currency market has developed with much higher exchange rates.
History
Until
World War I
World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
, the
Turkish pound
The lira ( tr, Türk lirası; sign: ₺; ISO 4217 code: TRY; abbreviation: TL) is the official currency of Turkey and Northern Cyprus. One lira is divided into one hundred ''kuruş''.
History
Ottoman lira (1844–1923)
The lira, along with t ...
was the currency used in the area. In 1918, after the fall of the Ottoman Empire, the
Egyptian pound
The pound ( arz, جنيه مصرى '; abbreviation: LE in Latin, in Arabic, historically also £E; ISO code: EGP) is the official currency of Egypt. It is divided into 100 piastres, or ersh ( ; ''plural'' ; abbreviation: PT), or 1,000 mill ...
was used. Upon gaining control of
Syria
Syria ( ar, سُورِيَا or سُورِيَة, translit=Sūriyā), officially the Syrian Arab Republic ( ar, الجمهورية العربية السورية, al-Jumhūrīyah al-ʻArabīyah as-Sūrīyah), is a Western Asian country loc ...
and Lebanon, the
French
French (french: français(e), link=no) may refer to:
* Something of, from, or related to France
** French language, which originated in France, and its various dialects and accents
** French people, a nation and ethnic group identified with Franc ...
replaced the Egyptian pound with a new currency for Syria and Lebanon, the
Syrian pound
The Syrian pound or lira ( ar, الليرة السورية, al-līra as-sūriyya; abbreviation: LS or SP in Latin, ل.س in Arabic, historically also £S, and £Syr; ISO code: SYP) is the currency of Syria. It is issued by the Central Bank o ...
, which was linked to the
franc
The franc is any of various units of currency. One franc is typically divided into 100 centimes. The name is said to derive from the Latin inscription ''francorum rex'' (Style of the French sovereign, King of the Franks) used on early France, ...
at a value of LS 1 = 20 F. Lebanon issued its own coins from 1924 and banknotes from 1925. In 1939, the Lebanese currency was officially separated from that of Syria, though it was still linked to the French franc and remained interchangeable with Syrian money. In 1941, following France's defeat by
Nazi Germany
Nazi Germany (lit. "National Socialist State"), ' (lit. "Nazi State") for short; also ' (lit. "National Socialist Germany") (officially known as the German Reich from 1933 until 1943, and the Greater German Reich from 1943 to 1945) was ...
, the currency was linked instead to
sterling at a rate of LL 8.83 = £1 stg.
A link to the French franc was restored after the war, but was abandoned in 1949.
Before the third phase of the
Lebanese Civil War
The Lebanese Civil War ( ar, الحرب الأهلية اللبنانية, translit=Al-Ḥarb al-Ahliyyah al-Libnāniyyah) was a multifaceted armed conflict that took place from 1975 to 1990. It resulted in an estimated 120,000 fatalities a ...
,
US$
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
1 was worth:
*LL 3.07 in 1965
*LL 3.26 in 1970
*LL 2.25 in 1975
*about LL 4 in 1981
In 1986 the pound began to fall against the dollar. On 13 June a dollar was worth LL 36.50. two weeks later it was worth LL 47.
*LL 500 in 1987
*LL 900 in December 1989
During the Civil War, the value decreased rapidly until 1992, when one US dollar was worth over LL 2,500. Subsequently, the value increased again, and since December 1997 the official rate has been fixed at LL 1,507.50 = US$1.
In August 2019, pressure on the fixed exchange rate with the US dollar started, creating a parallel market rate. The two-rate market is a textbook case of weakening central bank reserves that are not able to defend the official exchange rate. Continuous financial pressures driven by unsustainable sovereign debt, high trade deficit and deposit outflows due to loss of confidence are threatening the peg for the first time since 1992.
As of 3 March 2021, the black market rate in Beirut was LL 10,000 = US$1. By July 2021, it was around LL 24,000 to the dollar. On 26 May 2022, the value of the Lebanese pound dropped in the black market to LL 35,600 against the US dollar, its lowest value ever, despite the recently held
general elections
A general election is a political voting election where generally all or most members of a given political body are chosen. These are usually held for a nation, state, or territory's primary legislative body, and are different from by-elections ( ...
.
On 10 May 2021 the Lebanese Central Bank (
BDL
Bradley International Airport is a public international airport in Windsor Locks, Connecticut, United States. Owned and operated by the Connecticut Airport Authority, it is the second-largest airport in New England.
The airport is about halfw ...
) announced the launch of the “Sayrafa” platform, an electronic platform intended to record all Lebanese Pounds foreign exchange transactions and identify the exchange rates at any point in time. The platform was launched in June 2021, and as of August 2022, the sayrafa exchange rate is around 20% less than the unofficial black market rate. From 1 February 2022 the Sayrafa rate became the official US dollar to lira exchange rate for all credit card transactions.
Coins
Lebanon's first coins were issued in 1924 in denominations of 2 and 5 piastres (p). Later issues did not include the word "syriennes" and were in denominations of p, 1p, 2p, p, 5p, 10p, 25p and 50p. During World War II, rather crudely made p, 1p and p coins were issued. Before the war all coins were minted in
Paris
Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...
.
After the war, the Arabic spelling was changed from girsh (غرش) to qirsh (قرش). Coins were issued in the period 1952 to 1986 in denominations of 1p, p, 5p, 10p, 25p, 50p and LL 1. No coins were issued between 1986 and 1994, when the current series of coins was introduced.
Coins in current use are:
Banknotes
Lebanon's first banknotes were issued by the
Banque de Syrie et du Grand-Liban
The Bank of Syria and Lebanon, from 1919 to 1924 ''Banque de Syrie'', from 1924 to 1939 ''Banque de Syrie et du Grand-Liban'', then ''Banque de Syrie et du Liban'' (BSL) from 1939 to 1963, was a French bank that was carved out from the Imperial O ...
(Bank of Syria and Greater Lebanon) in 1925. Denominations ran from 25 piastres through to LL 100. In 1939, the bank's name was changed to the Bank of Syria and Lebanon. The first LL 250 notes appeared that year. Between 1942 and 1950, the government issued "small change" notes in denominations of 5p, 10p, 25p and 50p. After 1945, the Bank of Syria and Lebanon continued to issue paper money for Lebanon but the notes were denominated specifically in "Lebanese pounds" (ليرة لبنانية, livre libanaise) to distinguish them from Syrian notes. Notes for LL 1, LL 5, LL 10, LL 25, LL 50 and LL 100 were issued.
The
Banque du Liban
Banque du Liban (BdL, ar, مصرف لبنان, English: Bank of Lebanon) is the central bank of Lebanon. It was established on August 1, 1963, and became fully operational on April 1, 1964. It is currently headed by Riad Salameh.
One of the ma ...
(Bank of Lebanon) was established by the Code of Money and Credit on 1 April 1964. On 1 August 1963 decree No. 13.513 of the "Law of References: Banque Du Liban 23 Money and Credit" granted the Bank of Lebanon the sole right to issue notes in denominations of LL 1, LL 5, LL 10, LL 25, LL 50, LL 100, and LL 250, expressed in Arabic on the front, and French on the back. Higher denominations were issued in the 1980s and 1990s as inflation drastically reduced the currency's value.
Banknote
A banknote—also called a bill (North American English), paper money, or simply a note—is a type of negotiable instrument, negotiable promissory note, made by a bank or other licensed authority, payable to the bearer on demand.
Banknotes w ...
s in current use are:
All current notes feature an Arabic side with the value in Arabic script numerals of large size. The other side is in French with the serial number in both Arabic and Latin script and in bar code below the latter one.
Devaluation
Since September 2019, the exchange rate has forked into multiple distinct rates due to Lebanon's banking sector collapse. Within six months, five distinct Lebanese pound rates were defined against the US dollar, officially and unofficially. They were valued at:
*Official government rate = LL 1,507.5. This official rate has been pegged for over 25 years, but since Lebanon's financial crisis of 2019 it is effectively obsolete. The government plans to change it to 15,000 in February 2023.
*
Lebanon's Central Bank's "Sayrafa" rate = LL 30,300 (November 2022)
*"
Lollar
Lollar is a town in the district of Gießen, in Hesse, Germany. It is situated on the river Lahn, 7 km north of Gießen
Giessen, spelled Gießen in German (), is a town in the German state (''Bundesland'') of Hesse, capital of both the d ...
" (bank withdrawals of US$ in LL) = LL 8,000
*Parallel market rate = LL 41,000 (November 2022)
The parallel (or black) market rate is significantly higher than the official exchange rate.
Lollar
The "lollar" is a deposit denominated in
US dollars
The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from Dollar, other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American ...
in the Lebanese banking system. It is a nominal balance stuck or frozen in the Lebanese banks, with currency value simply as a computer entry. The lollar is not a tangible currency, but is a concept of an outstanding deposit in US dollars in Lebanese banks that can only be withdrawn in Lebanese pounds at a very reduced set rate
and considerably lower than the highly speculative black market rate which is multiple times higher. There are also limits put on the total amount that can be withdrawn on the lollars.
The term was coined by
Harvard University
Harvard University is a private Ivy League research university in Cambridge, Massachusetts. Founded in 1636 as Harvard College and named for its first benefactor, the Puritan clergyman John Harvard, it is the oldest institution of higher le ...
economic fellow Dan Azzi
after the Lebanese banks suffered serious difficulties and restricted the amount of US dollars and other foreign currencies they could pay to their depositors.
Exchange rates
The official exchange rate set by the Central Bank of Lebanon: Lebanese pound to U.S. dollar is approximately 1,507.5ل.ل per 1 US dollar. This rate is more two times different from the real exchange rate on the black market.
The real exchange rate of the Lebanese pound to U.S. dollar is approximately ل.ل39,750 per 1 US dollar on black market.
[The real exchange rate of the Lebanese pound to U.S. dollar on black market https://usd.currencyrate.today/lbp]
See also
*
Economy of Lebanon
The economy of Lebanon has been experiencing, as of late 2019, a large-scale, multi-dimensional crisis, including a banking collapse, a liquidity crisis and a sovereign default. It is classified as a developing, lower-middle-income economy. Th ...
References
*
*
External links
Banque du Libansayrafa price from banque du liban
{{Portal bar, Asia, Lebanon, Money, Numismatics
Currencies of Lebanon
Fixed exchange rate
Currencies introduced in 1924