The Lebanese Pound
FIN 454 Project
May 1, 2018
I’m originally from Lebanon; therefore, I would like to base my search on the currency over
there which is the Lebanese Pound (also known as Lira). This paper will cover the following
• Lebanese Pound
• The value of the currency in the period between January 2018 and April 2018.
• Did the currency appreciate or depreciate during that period?
• What are the reasons causing the appreciation/depreciation of the currency? If there’s
any. Or why isn’t any appreciation/depreciation.
• Prediction on the currency for the future.
• How to protect your interest if invested in Lebanon.
Before the First World War, Lebanon and Syria were part of the Ottoman Empire and
the Turkish pound was the legal tender. After the fall of the Ottoman Empire (in 1918) the
currency became the Egyptian pound. After France took control over Lebanon and Syria, they
replaced the Egyptian pound with a new currency known as the Syrian pound for both Lebanon
and Syria. The Syrian pound was linked to the French franc at a value of 1 pound = 20 francs.
Under the French colonization, Lebanon issued its own coins in 1924, and they also issued their
first banknotes from 1925. In 1933, Lebanese currency was officially separated from the Syrian
pound. During world war two, France’s defeat by Nazi Germany in 1941 caused the Lebanese
currency to be linked with the British pound sterling at a rate of 8.83 Lebanese pound = 1-‐
pound sterling. After the war ended, the Lebanese pound was linked then for a short while to
the French franc but abandoned it later on in 1949. Before the Lebanese Civil war occurred in
1975, 3 Lebanese pounds were worth 1 U.S. dollar.
As said earlier, Lebanon released their first coins in 1924. The coins were issued in
denominations of 2 and 5 “girush”. Later between 1952 and 1986, they released denominations
of 1⁄2, 1, 2, 2 1⁄2, 5, 10, 25 and 50 girush coins. No coins were issued between 1986 and 1994
until they released in 1995 the current series of coins which are resembled in 100 Lebanese
pounds (LBP), 250 LBP, and 500 LBP.
Following its independence in 1943, Lebanon concluded a monetary agreement with
France in 1948 separating its national currency from the unstable French franc (Law of May
24th, 1949). A council known as the Council of Money and Credit was formed to draw up the
Money and Credit Code and the by-‐laws of Lebanon's future central bank, the Banque...