Lebanon Devalues Its Currency By 90%: Bitcoin Fixes This
Lebanon’s currency has now been devalued and the rate is now set at 15,000 Lebanese pounds to the US dollar. Edward Snowden says “Bitcoin fixes this”.
Lebanon’s paralyzing financial crisis highlights the need for a better and more reliable solution such as Bitcoin.
Lebanon is adopting a new official exchange rate, devaluing its local currency by nearly 90%. The new rate is set at 15,000 Lebanese pounds against the U.S. dollar, according to a January 31 report, which cited a statement from the country’s central bank governor, Riad Salameh.
This marks a significant shift from the old rate of 1,507 Lebanese pounds per dollar. The official Lebanese currency has been pegged to the dollar at that rate since 1997.
Salameh stated that commercial banks in Lebanon “will see the part of their equity that is in pound decrease” once the new official exchange rate is implemented. He added that to cease the impact of the new development, the banks would be given five years “to reconstitute the losses due to the devaluation.”