The Lebanese pound hit a new low on Sunday against the greenback trading as low as 1,500 to the US dollar. The Lebanese currency has been on a downtrend since 2019, as the pound has lost 90% of its value since then. Lebanese citizens are facing shortages of basic items such as food and medicine, the report said, as verification says “shortages are increasing across the board.”
The country’s monetary system is collapsing, with the Lebanese pound hitting a new low against the greenback
13 June 2021 on Sunday Lebanese Pound (LPB) declined to 1,501 against the US Dollar, or 0.00066 LBP per USD. The country’s economic crisis that began in 2019 has wreaked havoc on the Lebanese economy.
Essentially, the Lebanese government over-spent reserves, took advantage of foreign aid after the Civil War, and “balanced his books with tourism receipts”. The country’s leaders borrowed to build skyscrapers, eateries and designer boutiques, luxury shopping malls and more. reports Note that it was so bad after the civil war, economists referred to Lebanon’s financial system as a “nationally regulated Ponzi scheme”.
Perhaps the most accurate description of the unprecedented economic collapse in Lebanon is the “deliberate depression”.
Policy inaction is no accident. Policy passivity is a political choice.
— Mohamed Faur محمد اعور (@mohdfaour89) 13 June 2021
latest accounts On Sunday, Reuters detailed that the country’s economy is in deep turmoil and shed light on how Beirut’s power plants cannot keep the grid running regularly. Other accounts circulating on social media tell the worsening story of Lebanon’s current financial crisis.
“The social fabric of Lebanon is changing rapidly: people are falling into poverty, who can leave the country, and you have those who are making money on the backs of others. This crisis is worse than in the 1980s When Lebanon’s economy was in tatters,” one person tweeted About the situation this week.
Already allies of this economic collapse due to years of corruption and mismanagement, #lebanonU.S. leaders have been infamous for their limited response.
– my | مِيراي (@MerayMaddah) June 11, 2021
“Times are tough in Lebanon; The economy has collapsed; People are worried,” another account of the economic situation in Lebanon Description.
A group that discusses “ongoing socio-economic interactions” is called “democratic economyasked his Twitter followers about the situation. The account asked its followers if they thought it would be a good idea to introduce cryptocurrencies as a potential solution to Lebanon’s economic problems. Twitter account @Democraticicecon said:
In light of the financial crisis and the collapse of the monetary system in Lebanon, people are looking for alternative systems for banks and solutions to the current crisis. One of the proposed scenarios is the use of digital currencies. What about cryptocurrency?
Lebanese petrol stations bare, pharmacists strike, power companies can’t keep grid running, dollar accounts still frozen
“Gas stations in Lebanon are going out of business,” adds one person. wrote on Friday. Reuters confirms issues with petroleum stations and notes that there are long lines at existing gas stations and fights are starting over who can fill their automobiles with gas earlier. Pharmacies are not functioning due to shortage of medicine and some hospitals are opting to perform emergency services only.
Lebanon’s nominated Prime Minister Saad al-Hariri and President Michel Aoun attempted to address the situation. But the two leaders have had issues running a political regime after several Lebanese officials resigned following the Beirut port explosion in August.
— jamila (@jamaila_morgan) 12 June 2021
Additionally, people are concerned about the country’s solvency issues, as Lebanese banks pulled depositors out of their dollar accounts last year. Then the central bank said that the money could be withdrawn but at the rate of £3,900 for one US dollar. With USD, depositors were promised that they could get better access to their funds next month.
“Lebanese people are taken hostage by Iranian militia”
Meeting with Minister and Major General Ashraf Rifi @ashraf_rifi
On Iran’s accession to Lebanon, the economic collapse and Lebanon’s relations with the Gulf
Via : Dr. @tarekchindeb https://t.co/x0mpZXtJVl
— Koh Nagao (@kohnagao) June 5, 2021
Funds can be withdrawn not exactly close to the global average, but much closer than the one-third withdrawal offer that was previously allowed. However, the International Monetary Fund (IMF) Condemned it Lebanon’s dollar deposit withdrawal plan on Thursday further stressed that the country needs to fix its economic policy and issue sweeping reforms.
While Lebanese officials court the IMF, citizens go without manoeuvre
imf wants to talk With Lebanon and the country’s imminent capital control law and dollar deposit withdrawal proposal believing that inflation could be too high. Meanwhile, much of the conversation with the IMF is essentially just bureaucrats and Lebanese high-net-worth individuals.
Most of the country is drowning with infrastructure issues, as the residents of the country cannot even afford basic things like clean water and manouche. reports Elaborate that even in Beirut’s most prosperous neighbourhoods, little Manouche Fern (bakery) cannot stay in business because no one has the money. The country’s rich, apart from the current bureaucrats who run the nation state, all left Lebanon long ago.
What do you think about the issues regarding the significant depreciation of the Lebanese pound against the US dollar this week? Let us know what you think about this topic in the comment section below.
image credit: Shutterstock, Pixabay, WikiCommons, Twitter,
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell any products, services, or companies, or a recommendation or endorsement of any products, services or companies. bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss alleged to be caused by or in connection with the use or reliance on any materials, goods or services mentioned in this article.