The Lebanese Pound is the official currency of Lebanon, signified by £ or L£. The Pound is also known as the Lira in Arabic or the Livre in French, and all notes and coins are written and referred to in both languages. The Pound is sub-divided into 100 piastres, although over time inflation has rendered the piastre obsolete. The Pound is pegged to the US Dollar at 1 USD = 1,507.5 LBP.
Economy
International emigration has created "commercial networks" throughout the world leading to $8.2 billion dollars of remittances in 2009. The money sent by Lebanese expatriots to their relatives represented 20% of the country's economy.
Lebanon has the highest proportion of skilled labor between Arab states.
To boost the economy and increase foreign direct investment, the Lebanese government has created an agency to promote domestic investments, IDAL, the Investment Development Authority of Lebanon in 1994. It was established to promote Lebanon as a key investment destination, and the attraction of providing and maintaining investments in the country.
In 2001, Law No.360 Investment was enacted to strengthen the mission of the organization, providing a framework for regulating investment activities in Lebanon, and providing local and foreign investors with a series of incentives and services business support. In addition to its role as investment promotion agency, IDAL was given the active promotion and marketing Lebanese exports including but not limited to agricultural and agro products.
History
The Ottoman Lira was used before World War I. After the fall of the Ottoman Empire, the currency became the Egyptian Pound in 1918.
After seizing control of Syria and Lebanon, the French replaced the Egyptian pound with a new currency in Syria and Lebanon, the Syrian Pound, which was linked to the French Franc at a value of 1 Pound = 20 Francs.
Lebanon issued its own coins and banknotes from 1924 from 1925.
Lebanon's first banknotes were issued by the Bank of Syria and Greater Lebanon (Banque du Liban) in 1925. Denominations ran from 25 girsha through to 100 pounds. In 1939, the bank's name was changed to the Bank of Syria and Lebanon.
In 1939, the Lebanese Pound officially separated from that of Syria, although it was still linked to the French Franc and remained interchangeable with Syrian money.
In 1941, after the defeat of France by Nazi Germany, the Lebanese Pound was linked instead to the British Pound Sterling at a rate of 8.83 Lebanese Pounds = 1 Pound Sterling. A link to the French Franc was restored after the war, but was abandoned in 1949.
