Lebanon sets new exchange rate, dramatically devalues pound

By KAREEM CHEHAYEB
Associated Press

BEIRUT (AP) — Lebanon’s Central Bank has set a new exchange rate that effectively devalues the country’s currency by 90% but did little to bridge the gap with the soaring black market rate. Wednesday’s dramatic measure is meant to stabilize the free-falling Lebanese pound and eliminate the multiple exchange rates that currently exist. That was a key demand of the International Monetary Fund for a bailout package for Lebanon. The new rate is 15,000 pounds to the dollar. However, it’s unclear how the new rate will be implemented or reconcile a host of different exchange rates that exist for public sector salaries, fuel prices and different services, including telecommunications.