A Project On The Lebanese Pound, With Its History And Future - UAH, FIN 454 - Informative

The  Lebanese  Pound    
Roni  Noueihed  
FIN  454  Project    
May  1,  2018  
Overview:    
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  
points:      
•   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.    
History:    
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.    
Coins:    
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.    
Banknotes:    
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...