The Advantages of the Lebanese Currency in the International Finance
18 viewsAbstract
In the beginning of 2026, the Lebanese economy shows signs of an unstable recovery. After years of deep crises, the exchange rate has finally stabilized at 89,700 LBP per dollar. While the economy is expected to grow by 4% this year, this recovery is built on existence strategies rather than deep reform. To protect the value of Lebanese currency the Banque Du Liban (BDL) has increased its international reserves to almost $12 billion. However, true progress is currently blocked due to an absence of trust in the banking system. There is an important need for a financial gap law to address the $72 billion in missing funds for people who lost their money in the banks and to clarify who is responsible for these huge losses. Because of these broken systems, a huge cash economy has appeared with around 40% of business happening outside the baking system. While the Lebanese pound serves as a stabilizing weight for government transactions, Lebanon cannot return to the global markets until it proves it is safe, and to follow international rules and to pay all its internal financial gaps.
Keywords
banking system trust, Banque Du Liban (BDL), Cash economy, Economic recovery, exchange rate stability, Financial Gap law, Foreign reserves, GDP growth, International Finance, Lebanese Pound (LBP)