Money in Lebanon is weird right now. If you're looking up 1 usd to lbp on Google, you're probably seeing a number like 15,000 or maybe 89,500. But which one is "real"? Honestly, it depends on who you are asking and what you're trying to buy. The official rate is often a ghost, while the black market rate—the one everyone actually uses at the grocery store or the gas station—is the one that dictates whether people can afford to eat. It’s a mess.
Economic collapse isn't just a headline here. It is a daily math problem. Since 2019, the Lebanese pound has lost more than 98% of its value. Think about that for a second. If you had $10,000 worth of savings in a Lebanese bank, it essentially turned into the price of a nice dinner over the span of a few years.
Why the official 1 usd to lbp rate is a lie
For decades, the rate was pegged. 1,507.5. Everyone knew it. You could walk into a bank, hand over 1,510 pounds, and get a dollar back. Then the Ponzi scheme—which is what many economists, including those at the World Bank, have called the Lebanese financial system—collapsed.
The government tried to pretend everything was fine. They kept the official rate at 1,507 even when the street was trading at 10,000. Then they moved it to 15,000. Now, the "official" unified rate sits closer to 89,500 LBP, but even that is a simplification.
You have the "Sayrafa" rate, which was the central bank’s attempt to control the volatility. You have the "Lollar" rate, which is a term locals coined for dollars trapped in the banking system that you can only withdraw in pounds at a massive haircut. And then you have the "Parallel Market" or "Black Market" rate.
If you are a tourist landing at Beirut-Rafic Hariri International Airport, do not—under any circumstances—exchange your money at a bank. You will get fleeced. You go to a sarraf (money changer). These are small shops, often with bulletproof glass, where the real 1 usd to lbp exchange happens.
The psychology of the black market
Why does the rate jump 5,000 points in a single Tuesday?
Sometimes it’s politics. Lebanon is a country of "stalemate." No president, a caretaker government, and constant tension on the southern border. Every time a politician gives a speech that sounds slightly aggressive, the pound tanks.
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Speculation is the other monster. There are apps. Literally, mobile apps that people refresh every ten minutes to see the current rate. It’s become a national obsession. When the app says the dollar is getting stronger, everyone rushes to buy dollars, which, of course, makes the dollar even stronger. It’s a self-fulfilling prophecy of inflation.
Living in a "Dollarized" economy
Lebanon is basically a dual-currency country now, but not the good kind. Most restaurants and supermarkets now price everything in USD. You’ll see a menu where a burger is $12. You can pay in dollars, or you can pay in pounds at the "daily rate."
This creates a massive class divide.
- The Lucky Ones: People working for international NGOs or remote tech companies getting paid in "fresh" dollars. They are doing okay. In fact, for them, Beirut is relatively cheap.
- The Struggling Majority: Teachers, soldiers, and civil servants. Imagine your salary was 3 million LBP. In 2018, that was $2,000 a month. A solid middle-class life. Today, that same 3 million LBP is about $33.
It is heartbreaking. I’ve seen retired generals standing in line for subsidized bread because their pensions, which they worked 40 years for, aren't enough to buy a tank of gas.
The role of BDL (Banque du Liban)
The central bank has been trying to suck liras out of the market to stop the bleeding. They use something called "circulars." Circular 151, Circular 158, Circular 161. It’s a dizzying array of rules that tell you how much of your own money you’re allowed to touch.
Wassim Mansouri, the acting governor who took over after Riad Salameh’s controversial and scandal-ridden tenure ended, has tried to stop the central bank from funding the government by printing more money. Printing money is like pouring gasoline on a fire. The more LBP notes there are in circulation, the less each one is worth.
The 1 usd to lbp volatility and the "Fresh" dollar
You’ll hear the word "fresh" a lot in Beirut. It sounds like produce, but it refers to currency. A "fresh dollar" is a dollar that came from abroad after the 2019 crash. It’s paper money you can actually hold.
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Banks in Lebanon are essentially museums of where money used to be. They don't function as banks anymore. They don't lend. They don't give you your savings. Most people keep their cash in safes at home or under mattresses. It’s estimated that billions of dollars are sitting in Lebanese homes because nobody trusts the institutions.
This lack of trust is the primary reason why 1 usd to lbp will likely never return to "normal" levels. Trust is the only thing that gives a fiat currency value. Once that's gone, the paper is just paper.
What should you do if you are traveling or sending money?
If you're sending money to family, use services like OMT or Western Union. They pay out in USD (usually). If you send it to a bank account, it might get stuck in the "Lollar" trap.
For travelers:
- Bring Cash: Crispy, new $50 and $100 bills. Some places are picky about older bills or small tears.
- Check the Apps: Download an app like "Adde el Dollar" or check websites like Lira Rate. These aren't official, but they are accurate to what’s happening on the street.
- Don't exchange all at once: The rate fluctuates daily. Exchange $100 at a time.
The Hyperinflation Trap
Lebanon isn't technically in hyperinflation anymore by the strictest definitions (which usually require 50% inflation per month), but it’s close enough that it feels like it. When the 1 usd to lbp rate moves, the price of medicine moves. The price of electricity (mostly from private generators because the state power grid is dead) moves.
Everything is imported.
Lebanon doesn't produce enough to sustain itself. When you import everything from wheat to fuel, the exchange rate is the only metric that matters. It’s the pulse of the country. And right now, the pulse is erratic.
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The International Monetary Fund (IMF) has been begging Lebanon to implement reforms. They want a unified exchange rate. They want a bank restructuring. They want the "big fish" to take losses instead of the small depositors. But the political elite in Lebanon are also the owners of the banks. Asking them to fix the banking system is like asking a fox to redesign the security for a chicken coop.
Is there a bottom?
People asked this when the rate hit 10,000. Then 40,000. Then 100,000.
Technically, there is no floor. In Zimbabwe or Venezuela, the rates went into the millions and billions. Lebanon isn't there yet, mostly because of the massive diaspora. Millions of Lebanese living in the US, Brazil, West Africa, and the Gulf send back billions of dollars every year. This "remittance economy" is the only thing keeping the country from a total, dark-ages style collapse.
It’s a weird paradox. The country is bankrupt, but the rooftop bars in Gemmayze and Mar Mikhael are packed with people spending "fresh" dollars.
Practical Steps for Handling the LBP
If you are dealing with Lebanese Pounds, the goal is "hot potato." You don't want to hold them for long.
- Convert quickly: If you receive LBP, convert what you don't need for immediate expenses into USD or buy your non-perishable groceries immediately.
- Negotiate in USD: If you're a freelancer or business owner, always quote in "Fresh USD." If you quote in LBP, by the time you get paid two weeks later, your profit might have evaporated.
- Watch the News: In Lebanon, politics is economics. If there's a hint of a new government agreement, the pound might actually strengthen for a few days. That’s your window to buy.
- Verify the Source: Don't trust the rate posted on a random social media post. Use the established trackers that aggregate data from multiple dealers across Beirut, Tripoli, and Sidon.
The 1 usd to lbp situation is a cautionary tale of what happens when a central bank stops being a regulator and starts being a gambler. For the average person, it’s a lesson in resilience. You learn to do math faster than a calculator. You learn to live in the "now" because nobody knows what the rate will be tomorrow morning.
Actionable Insights for Navigating the Currency Crisis:
- Prioritize Liquidity: In a volatile market, cash is king. Avoid locking funds into any Lebanese financial instrument that doesn't offer immediate, physical USD withdrawal.
- Use Real-Time Aggregators: Rely on multiple black market tracking apps to find a "mean" rate before exchanging large sums.
- Hedge with Assets: For those living in Lebanon, converting excess LBP into storable commodities or hard currency is the only way to preserve purchasing power.
- Demand Transparency: If you are using a credit card (which is starting to work again in some limited "fresh" capacities), always ask the merchant exactly what rate their POS machine is using before swiping.
The situation remains fluid, and while the rate has seen periods of relative stability around the 89,000–90,000 mark recently, the underlying structural issues of the Lebanese economy haven't been solved. Stay informed, keep your assets "fresh," and never trust a "pegged" rate in a crisis zone.