Governor of the Central Bank of Lebanon (Banque du Liban) Riad Salameh said Lebanon will adopt a new official exchange rate of 15,000 Lira (pounds) to the US dollar starting in February.
The Lebanese currency has lost about 97 percent of its value since 2019.
This will then represent a 90 percent downsize to the official rate for the Lebanese currency, which has remained unchanged for 25 years.
Despite the announcement of devaluing the currency from the old official rate of 1507 pound per US dollar, to 15,000 pounds per US dollar, prices are still far from the parallel market prices.
According to the decision of the Governor of the Banque du Liban, the change will be applied to the banking sector in the country which has been suffering from an economic crisis since 2019.
Analysts expect that this significant change in exchange rates will have a limited impact on the Lebanese economy.
The country has become largely dependent on dollar transactions, and currency exchange operations are carried out according to parallel market prices and unofficially.