The Lebanese currency reached an important milestone on Sunday, when the country’s continued financial collapse and political stagnation hit a new low against the U.S. dollar.
According to traders, the Lebanese pound is traded at 15,150 pounds per dollar, a depreciation of about 90%. At the end of 2019, a financial and economic crisis broke out in Lebanon.
Lebanon is experiencing severe economic collapse, threatening its stability. The World Bank called it one of the worst depressions in modern history.
In March, at least 15,000 protesters walked on the streets of Lebanon for more than a week, blocking the streets with burning tires. Foreign exchange reserves have been used to fund a plan to subsidize basic commodities such as fuel, medicines, and wheat when these commodities are depleted and shortages increase. In the past few weeks, some hospitals have ruled out elective surgeries and only performed emergency surgeries to supplement medical care.
This week, Salad al-Hariri, appointed by the prime minister, went on a two-day strike due to a drug outbreak and long lines of drivers frustrated with gasoline, sparking controversy.
Since President Michel Aon’s appointment in October, he has disagreed with the President’s appointment of ministers.
After the explosion in Beirut port on August 4, the previous government continued to serve as the caretaker.
Cash and equivalent Lebanese pounds are close to market value, but the International Monetary Fund on Thursday criticized Lebanon’s proposal to withdraw US dollar deposits and a capital control law that has not yet been passed by parliament. These two measures only make sense when they become part of broader reforms.