Emerging Markets Rates and Currencies Handbook

Lebanon (LBP - Lebanese Pound) Citi in Lebanon Citigroup’s presence in Lebanon dates back to the 1950s when Beirut was the bank’s hub for the region. Since re- establishing its fully licensed Lebanon branch in 1996, the bank has been offering a full range of corporate and investment banking services, including traditional trade, lending and hedging products to major corporations (TTLCs and GSGs) and financial institutions operating in the country, as well as public sector entities. Market Overview Due to the financial and economic turmoil, the Central Bank of Lebanon has officially devalued the LBP currency from 1,500 to 15,000 in February 2023. There has also been a shortage of foreign currency and informal capital control where clients cannot repatriate foreign currency received before April 2020. Currently, the USDLBP is trading between 90,000 and 100,000 in the parallel market. In an effort by the Central Bank of Lebanon to unite the FX rates in Lebanon and stabilize the currency, they have introduced a platform called Sayrafa, where banks act as money exchangers to buy/sell “fresh funds” against LCY at rates close to the parallel market rates (86,300 as of early June 23).The LBP is not traded offshore. The most frequently traded currency pairs in general are: USDLBP, EURUSD, GBPUSD, and USDCHF. The most traded currency pairs involving LCY are: USDLBP, EURLBP, and GBPLBP. Central bank intervenes when there is either demand/supply for FCY. No onshore rates trading available. Convertibility Cannot be traded offshore. Non-resident entities cannot hold LBP accounts. No forward markets. 115