HOW TO EXCHANGE MONEY ON LEBANON’S BLACK MARKET

Learning how to exchange money on Lebanon’s black market ahead of visiting the country is essential. An absolute must-do before your Lebanon trip as otherwise you could end up paying up to 60 times more of what everything is really worth. And be charged $90 for a McChicken as I was.

To save you this unpleasant experience and several dollars, I’ve put together this post. Keep it handy as it has everything you need to know on how to exchange money on Lebanon’s black market. To make the most of your trip, check out these other posts on the 15 Best Things to do in Beirut and the 12 Best day trips from Beirut.

The economic crisis in Lebanon

Lebanon used to be one most prosperous, tolerant, and modern countries of the Middle East. Lebanon was so westernised that its capital, Beirut, was known as the Paris of the East. Tourists from all over the world would visit Beirut’s high-end stores, markets, and boutiques every year.

However, around 1975, the picture dramatically changed with the breakout of a civil war. And the economy hasn’t fully recovered yet. On the contrary, Lebanon is undergoing a severe economical crisis sadly famous for its electricity shortages, inflation, and currency devaluation.

Back in the days before the civil war 1 USD would be exchangeable for 3 Lebanese Lira. In the 1980s the US dollar started to rise against the Lebanese Lira and the exchange rate exceeded 2,800 Lebanese Liras per USD.

With the end of the war in the 1990s the exchange rate gradually declined and settled at 1,500 Lebanese Liras per USD. And there it remains, at least officially, because in the black market you’ll get many more Lebanese Liras per USD.

The official exchange rate in Lebanon

Unlike many modern currencies, such as the USD, Euro, or British pounds, whose values fluctuate daily in the capital markets, the exchange rate of the Lebanese Lira was fixed at a value determined by the government. By law, one USD would be the equivalent of 1,500 Lebanese Lira, day after day, no matter what. You can check it here.

Therefore, if you use your foreign credit card on a Lebanese ATM to withdraw money, the local bank will apply the rate 1 USD = 1,500 Lebanese Lira. Likewise, if you visit an official exchange store to exchange money by card or in cash, they will give you 1,500 Lebanese Liras per dollar.

What if I told you that everywhere else you would be offered around 100,000 Lebanese Liras per dollar? Yes, about 66 times more. Making everything you can buy in Lebanon 66 times cheaper. Crazy, yet true. Welcome to the black market. Time to actually learn how to exchange money on Lebanon’s black market and benefit of same.

What is Lebanon’s money black market

Government’s exchange rate became unsustainable as the country’s economy continued to worse and its citizens realised that the lira was no longer worth its historical price. Suddenly, a local blackmarket for money emerged.

People started exchanging local cask for foreigner currencies at more attractive rates to the foreigners. Locals were accepting to give away more and more Lebanese Liras for every incoming dollar. They would do it in the street behind any corner, inside their shops and cafes, or at home.

Not really hiding, as this is something everybody in the country knows and somehow tolerates. Just away from the banks and the government’s guidelines.

The real value of local currency decreases almost by the minute. In March 2023 this is of about 100,000 Lebane Lira per USD. However, in January 2022 when I visited it was of 30,000 Lebanese Lira per USD. And in 2021 the black market rate was at 15,000 Lebanese Lira per USD.

How to exchange money on Lebanon’s black market

Most accepted currencies in Lebanon

To exchange money on the black market in Lebanon you’ll need cash. Preferably, crispy cash. That is new Euro notes or new USD notes issued after 2009.

You can obtain these by withdrawing money from your local ATM, visiting the local branch of you bank, or at any exchange company ahead of landing in Lebanon. You will need to obtain USD and/or Euro cash ahead of traveling to Lebanon.

No need to bring coins as these are useless, just brand new notes. You can also exchange other major currencies like British pounds or Japanese yens. Yet, the best exchange rates are for dollars followed by euros.

How to find a local exchange place in Beirut

The next step is to hit the street with those dollars or euros and find a place to exchange them. The best place to do so is around Hama neighbourhood. You’ll find tones of local exchange stores there.

Just make sure these are local, as opposed to internationally know exchange and money sending companies. Most of these locals stores are ran by old men and will have the daily exchange rate in a small board at the entrance.

To prepare yourself, you can check the approximate black market rate on the internet here. You can shop around as different exchangers will have different exchange rates. Just give them your dollar / euro notes and they will give you lots of local Lebanese Lira. I found these places very reliable and haven’t hear of any one being ripped off nor given local currency in bad shape etc.

Additional ways of exchanging money

If you land on a Sunday or are only around town after working hours you might find all these local exchange places closed. Don’t worry, just head to whatever store is open and ask them if they would exchange some money for you.

Local bakeries, supermarkets, restaurants, etc. are usually keen on doing this, and so are your fellow customers in these stores.

Yet, you’ll need to manage your expectations as it might not be possible to exhange much money in one go. It would be unusual for someone to carry over $20 in local currency. Or for a shop to be willing to exchange over $50 at once. Bear this in mind.

Prices in Lebanon

As you may be guessing by now, you’ll not need a suitcase full of cash to visit Lebanon. Life in Lebanon is expensive, very expensive, for locals. That is because the economic crisis has boosted unemployment, cut salaries, and triggered inflation.

However, as the depreciation of the local currency is so big, Lebanon is cheap for foreigners. Especially those coming from economies with strong currencies such as the US or Europe.

Let me give you some examples, as of 2023. An Uber from the airport to the centre of Beirut is 100,000 Lebanese Lira, with is only $1. Now imagine sharing that taxi with your family, partner o friends, totally inexpensive. A night in a dorm is about $5, a double room in a medium range hotel is $25 and a double room in a high end hotel is $70.

Most tourist attractions in Beirut such as mosques, churches, and roman ruins are free. Regarding food, a meal in a local Lebanese restaurant ranges from $1 to $5 in Beirut’s city centre, and will be $1-$3 elsewhere. Beers in pubs are $0.70-$1 and shisha is also usually below $1.

Recap on how to exchange money on Lebanon’s black market

Lebanon is undergoing a huge post-civil war economical crises leading to a severe depreciation of their local currency, the Lebanese Lira. Consequently, the government has fixed the official exchange rate at 1,500 Lebanese Lira per USD. This is something the locals understand as unreal and are willing to downgrade the exchange rate within the black market to 100,000 Lebanese Lira per USD.

To benefit of the black market rate, you’ll need the following. Firstly, bring cash into the Lebanon in new USD and/or Euro notes. Secondly, exchange these USD and/or Euro at the local exchange offices in Hama. Thirdly, never use your credit cards to pay nor to withdraw at ATMs as these will apply the official exchange rate.

Besides the blackmarket situation, Beirut and Lebanon seemed totally safe to visit and are wonderful destinations to explore. Additionally, Beirut is the best entry point to explore nearby Syria. Please leave a comment below if you have any questions on Lebanon’s money market. Or reach out via my Instagram and/or Tiktok pages for additional information and insights on my travels.