The Lebanese Finance Ministry said in a statement on Wednesday that the Lebanese pound's official rate, which has been set at 1.5075 per dollar since 1997, will be fixed at 15,000. The decision, effective on November 1, was confirmed by the Central Bank.
The step is contingent on the approval of a financial recovery plan that Lebanon failed to adopt for more than two years since the government's debt default. The program, designed to end an economic collapse, marks an attempt to restructure the banking sector and the central bank's balance sheet by recognizing billions of losses in the financial system.
Lebanon is looking to turn the page on a crisis labeled by the World Bank as one of the worst globally since the mid-19th century. The economic meltdown pushed three-quarters of the country's population into poverty, with the pound losing more than 90% of its market value.