4 yıl önce

Lebanon currency plunges to hit new low as economic crisis deepens

The Lebanese pound is trading at around 15,150 to the dollar, losing around 90 percent of its worth since the start of the crisis two years ago.

Reuters

In this March 2, 2021 file photo, US dollar banknotes and Lebanese pounds are pictured at a currency exchange shop in Beirut, Lebanon.

Lebanon's currency crashed past a milestone reaching a new low against the dollar, as the country's financial meltdown and political deadlock linger.

Market dealers said the Lebanese pound was trading at around 15,150 to the dollar, losing around 90 percent of what it was worth in late 2019, when Lebanon's economic and financial crisis erupted.

Lebanon is in the throes of a deep economic meltdown that is threatening its stability.

The World Bank has called it one of the deepest depressions of modern history.

The last time the pound hit a low of 15,000 in March protesters took to the streets across Lebanon for over a week, blocking roads by burning tyres.

Foreign reserves, used to fund a subsidy programme for basic goods including fuel, medicine and wheat, are running out and shortages have been worsening across the board in recent weeks.

🇱🇧#Lebanon today:
• Lebanese pound continues its decline trading at 15,000LL/$ (record low was 15,100LL in March)
• Aug.4 declared national day of mourning. 0 accountability or justice nearly a year post blast
• Car queues to fill up gas get longer, continue to congest roads
— Houshig K. (@houshigk) June 11, 2021

Political deadlock over cabinet formation

Some hospitals are ruling out elective procedures and only performing emergency surgeries to ration what is left of medical supplies.

Most pharmacies staged a two day strike this week as medications run out and hours long car queues for gasoline have frustrated motorists causing squabbles.

The financial collapse is taking place against a backdrop of fractious politicians bickering over cabinet formation.

Prime Minister-designate Salad al Hariri has been at loggerheads with President Michel Aoun over naming ministers since his designation in October.

The former government has continued in a caretaker capacity after having resigned in the aftermath of the August 4 Beirut port blast.

Depositors, locked out of their dollar accounts since last year, have been promised some access starting July, with each customer getting $400 in cash and an equivalent in Lebanese pounds at a rate close to market value.

But the International Monetary Fund on Thursday criticised Lebanon's proposal for dollar deposit withdrawals and a capital control law yet to be approved by parliament saying both measures would only be meaningful as part of broader reforms.