Lebanon operates on a fractured monetary system following the 2019 financial collapse. The official currency remains the Lebanese pound (LBP), but the economy functions on multiple parallel exchange rates. The Central Bank's official rate stood at 1,507.5 LBP to one US dollar for decades, but this rate became meaningless after October 2019. Banks restricted dollar withdrawals and imposed informal capital controls without legal framework. By 2020, the parallel market rate exceeded 9,000 LBP per dollar. The Sayrafa platform launched by Banque du Liban in May 2021 created an intermediate rate starting at 3,900 LBP per dollar, reaching 89,500 LBP by mid-2023. Street rates in Beirut consistently traded 2,000 to 5,000 pounds higher than Sayrafa. The government passed Circular 158 in February 2023 establishing 15,000 LBP as the official accounting rate, then Law 277 in April 2023 unified rates at 89,500 LBP per dollar for most transactions. Physical reality diverged immediately. Money changers in Hamra and Mar Elias displayed digital boards showing rates between 88,000 and 92,000 LBP through late 2023. ATM withdrawals in Lebanese pounds converted at whichever rate the issuing bank chose, ranging from Sayrafa to street rates minus service fees.
US dollars circulate as de facto primary currency. Restaurants in Jounieh, hotels in Byblos, and shops in Downtown Beirut price goods in dollars or accept payment in fresh dollars at preferential rates. The term "fresh dollars" refers to physical currency brought from abroad or held in accounts predating October 2019, distinguished from "lollars"—Lebanese dollars trapped in banking system accounts with withdrawal restrictions. A 50 dollar restaurant bill paid with trapped bank funds might require 70 dollars' worth at the account's frozen exchange rate, while physical bills settled at menu price. Supermarkets including Spinneys, Carrefour, and local chains in Achrafieh and Verdun price imported goods in dollars and local produce in pounds at fluctuating ratios. The same grocery receipt mixes currencies without clear conversion logic. Gas stations switched to dollar pricing in 2021 after subsidy removal. A liter of 95-octane gasoline cost 1.10 to 1.30 dollars through 2023 depending on global oil prices, payable in dollars or pound equivalent at pump-side posted rates. Electricity generator subscriptions, ubiquitous due to Électricité du Liban's limited output of 2 to 4 hours daily in most areas, charge 100 to 200 dollars monthly for 5-ampere service in Beirut neighborhoods. Payment in pounds requires negotiation with generator operators who set their own rates.
Banking access collapsed for most residents. Lebanese banks, including Bank Audi, BLOM Bank, and Byblos Bank, imposed withdrawal limits starting November 2019. Circular 151 issued by the banking association capped monthly withdrawals at 1,000 dollars with conversion to pounds at rates determined by each institution. Many branches reduced this to 400 or 600 dollars. Dollar account holders unable to access their deposits filed thousands of lawsuits. Some branches in Hamra, Achrafieh, and Tripoli experienced armed depositor protests, including incidents where account holders held employees temporarily to demand their funds. International transfers into Lebanon became unreliable. SWIFT messaging continued functioning, but correspondent banks grew reluctant to process Lebanon-bound transfers. OMT, LibanPost, and Whish Money operate as transfer agents receiving Western Union and MoneyGram transfers. Recipients collect dollars at posted office rates, typically 1,000 to 2,000 pounds below street rates. OMT maintains 400 branches across Lebanon, with concentrations in Beirut, Sidon, and Zahle. A 500 dollar transfer incurs sender fees of 15 to 25 dollars plus the recipient-side exchange rate discount. Opening new bank accounts became nearly impossible for residents, though some institutions accept deposits for utility payments without offering withdrawal services.
Credit and debit cards function inconsistently. Cards issued by Lebanese banks prior to 2019 stopped working for international online purchases as issuing banks lacked dollar liquidity to settle transactions. Some cards work domestically at point-of-sale terminals in Beirut supermarkets and Jounieh restaurants, debiting pound accounts at rates set by merchants. International cards—Visa and Mastercard issued by banks outside Lebanon—work at terminals in tourist-oriented businesses. The Phoenicia Hotel in Ain el Mraiseh, restaurants in Byblos harbor, and shops in Saifi Village accept international cards, charging in dollars at current Sayrafa or street rates plus 3 to 5 percent processing fees. Many merchants avoid card acceptance entirely due to banking relationship difficulties. Cash dominates. Travelers carry physical dollars in denominations of 20, 50, and 100 dollar bills. Small businesses prefer 20s and 50s; changing 100 dollar bills outside Beirut money changers proves difficult. Lebanese pound notes in denominations of 1,000, 5,000, 10,000, 20,000, 50,000, and 100,000 LBP circulate for small purchases. The 100,000 pound note introduced in 2020 holds purchasing power of approximately 1.10 dollars at 90,000 rate. Coins disappeared from circulation as metal value exceeded face value.
Mobile payment applications emerged as banking alternatives. OMT Pay, Whish Money app, and Wish app by Bank Audi allow peer-to-peer transfers and merchant payments using dollars held outside traditional banking channels. Users load accounts through OMT offices or authorized agents. A coffee at Café Younes in Gemmayze costs 3 to 4 dollars, payable via OMT Pay by scanning QR codes. Adoption remains limited outside Beirut and Mount Lebanon. Cryptocurrency usage increased among young professionals and expatriate-connected families. Bitcoin ATMs appeared in Mar Mikhael and Achrafieh, charging 8 to 12 percent conversion fees. Some freelancers receiving international payments use USDT (Tether) stablecoin transfers peer-to-peer, converting to dollars through local networks at 1 to 2 percent discounts. The Central Bank issued no clear regulatory position on cryptocurrency transactions through 2023, creating legal ambiguity without outright prohibition.
Pricing structure lacks consistency. A meal at a local restaurant in Tripoli costs 8 to 12 dollars for mixed grill with sides, while equivalent meals in Tyre or Batroun range 10 to 15 dollars. Beirut prices exceed other regions by 20 to 40 percent. A manakish zaatar flatbread costs 1 to 1.50 dollars in Zahle bakeries, 2 to 3 dollars in Hamra. Hotels in Byblos charge 80 to 150 dollars per night for mid-range rooms, payable in cash dollars only. Taxis and service shared taxis adopted dollar pricing. A service ride from Hamra to Achrafieh costs 1 to 1.50 dollars per passenger. Private taxi from Beirut to Byblos runs 40 to 50 dollars, to Baalbek 60 to 80 dollars. Drivers carry change in small dollar bills and pound notes. Fuel price fluctuations cause frequent fare renegotiations. Supermarket prices for imported items follow global costs plus 20 to 30 percent markup. A kilogram of imported Dutch cheese costs 18 to 22 dollars at Spinneys in Ashrafieh. Local produce at vegetable stands in Sidon or Zahle markets operates in pounds: tomatoes 20,000 to 30,000 LBP per kilo, cucumbers 15,000 to 25,000 LBP.