How to Shift
The Odds In Your Favor
What was once an oasis of financial stability and growth in the Middle East, Lebanon has witnessed many unfortunate events. Crisis after crisis, the historically strong and sound financial sector is now succumbing to the pressure while consuming the last strands of economic buffers: Lebanon has plunged into a fully-fledged crisis.
People are struggling to make ends meet, and with the increasing bank restrictions, they are losing hope and facing the reality of maybe never retrieving their full deposit values, that is, if they exist anymore. The demand for USD, among other currencies, accentuates the severity of the problem. The low supply is skyrocketing the black-market rates that consequently assist in the depositor's purchasing power's corrosion and, ultimately, the fragile ecosystem's crash.
Depositors are given the option to cash out their USD savings for a rate of 3,900 LBP per USD; on the other hand, the black-market exchange rate is at 15,000 LBP. Depositors after that will be losing more than %50 of their life-long savings.
Nonetheless, Lebanese people, with their innovative thinking, went out looking for loopholes and alternatives to alleviate and salvage what remains from their caged deposits. Many modern techniques emerged:
Many people shifted their focus from physical currencies to volatile cryptocurrencies to rescue their deteriorating deposits. Bitcoin and other Alt cryptos offered the Lebanese a modern approach to cash out and flourish their savings. This crypto's attractiveness lies behind its decentralization technology, offering an absolute opposite from the LBP-USD fiat money that a central government controls.
Traders and people are using numerous platforms to link potential sellers with prospective buyers to finalize transactions. The seller and buyer agree on the payment method, whether it is completed using cash or a banker's cheque. Since there remains a risk of having the Banker's cheque tied up in the bank, the seller might charge a higher commission rate that can go up to %40 of the value. Buyers are willing to accept this rate since it is more significant for them to move their money out of the Lebanese market than to risk more devaluation or convert them at a rate of 3,900 LBP per USD.
As of February 17 2021, the value of 1 bitcoin has skyrocketed to reach an all-time high of 51,000$. This increasing momentum, although risky, is more attractive for depositors than to sit and watch their deposits get eroded due to inflation and a depreciating exchange rate.
People need access to their USD savings to continue their businesses' essential operation or help their families abroad. One extreme measure that was and still is, adopted is the trade of an LBP banker's cheque in exchange for USD cash. Although people were receiving fresh dollars, they were also losing more than %50 of their savings; why? A $1,000 Banker's cheque is now worth around 450$. It is because $1 at the bank is worth 3,900 LBP whereas $1 in the black market is worth around 9,900-9,950 LBP.
Some Banker's Cheque traders accept giving the people fresh USD in exchange for a cheque under the condition that the amount exchanged is lower than the denominated amount. People are desperate to such an extent that they are willing to accept any amount proposed by traders, which can lessen their burden, making these conditions appealing to buyers.
Car, Jewelry, and Others
Another exotic solution that the Lebanese turned to was to invest in Real Estate, Cars, and Famous Sculptures. People are using their Banker's cheque to buy these bizarre alternatives and resell them in the market for fresh USD. Even though they do so at a loss, it remains more appealing for everyone than leaving their deposits locked up.
With zero possibility to transfer the money outside of the country, buying a house or a car is a second-best alternative for these depositors. With optimism for the future, these depositors aspire to resell these purchased assets when the economic conditions are better or reselling them today to help ease the financial burden in a country where the money is locked in the Alcatraz prison, the Lebanese financial market.
Trade using your LBP account
One platfrom, FxGrow, allows their Lebanese customers to trade FOREX using their locked-up money.
This excellent opportunity allowed depositors to invest their idle coins into a cash-generating operation and to have their money, once again in their hands.
In conclusion, all the tools mentioned above will allow you to access your unreachable deposits and put them into better use, from Bitcoin trading to using FxGrow Platform. Lebanese have always been known for their remarkable intelligence and ingenious solution, and what was presented is nothing less. So why settle for less when you can get your savings out of this labyrinthine system.