A prominent economist warned on Monday that closure of banks across Lebanon will lead to more drop in the Lebanese pound against the US dollar in the black market.

Talking to Al-Manar, Full Professor and Researcher of Physics & Economics at the Lebanese University DR. Jassem Ajaka stressed that the Lebanese citizen is the first to be harmed by the 3-ay closure of the Lebanese banks.

“It’s highly likely that the exchange rate of the US dollar will surpass 40,000 Lebanese pounds in the black market, especially that the dealers in Lebanon will consider the banks’ closure a golden chance to raise the demand on the US dollar,” Ajaka told Al-Manar’s Nhar Jdeed (New Day) talk show.

The citizen will be hurt as the money withdrawal from banks will be suspended during the 3-day strike, Ajaka clarified, adding that the import of goods in the country will be also affected by the banks’ move.

In this context, the Lebanese economist called for ending the strike as soon as possible.

The Lebanese pound has hit a new low against the US dollar in the black market on Monday, as banks are going into a three-day strike in protest against holdups which took place recently by angry depositors.

The pound sold at close to 38,500 to the greenback on Monday, according to websites monitoring the exchange rate. It had briefly plunged to 38,600 against the dollar on Friday before rising slightly.

The drop in recent days marks a record low for the beleaguered national currency.

Source: Al-Manar English Website