Collapse of Lebanese Pound Sparks New Protests

Protests and bandits broke out in several regions of Lebanon on Thursday evening following an unprecedented collapse of the local currency against the dollar.

Beirut and several regions witnessed protests that took place to protest monetary and economic policies.

Protest broke out  in the capital, the Bekaa region and the north of the country to cut off roads and ignite rubber tires.

The parallel exchange markets, or what is known as the "black market", are witnessing an increase in the dollar exchange rate against the Lebanese pound, which has rapidly exceeded the level of 6,000 Lebanese pounds against one dollar, compared to 1500 pounds, as an official price determined by the central bank to finance imports of wheat, fuel and medicine.

Economic sources reported that several companies and institutions stopped delivery of goods for fear of registering an additional collapse of the Lebanese pound, which reflects a loss in the capital of companies.

Fears arise that the country will slide into chaos, translating into living crises that will put more than half of the Lebanese people below the poverty line.

Clashes took place between the Lebanese army and demonstrators in front of the Banque du Liban in Tripoli, which resulted in the injury of 8 protesters.

The Lebanese security forces fired tear gas bombs to disperse the protesters in front of Riad El Solh Square in Beirut, after the demonstrators set fire to the area.

On Thursday, the Lebanese pound, fell to 5,000 LBP against the dollar and lost 70% of its value since October when Lebanon sank in an economic crisis seen as the greatest threat to the country's stability since the civil war (1975-1990).

International reports and research had estimated that about a million Lebanese would be without jobs and salaries in the second half of this year.

Some traders said earlier that the dollar was bought at 4,900 LBP today, compared to 4,600 LBP yesterday.

The roots of the crisis are due to decades of corruption and waste in Lebanon, which has one of the largest public debt burdens in the world.

Nasser Saidi, a former Lebanese economy and trade minister, attributed the huge depreciation of the Lebanese pound to the growing demand for the dollar in Syria, as the local currency hit record low levels, before the start of the introduction of new US sanctions.