With the Lebanese pound dropping to a new low against the dollar, protesters clashed with security forces across the country, as the ongoing economic crisis has led to a significant rise in the cost of living.
The Lebanese lira fell to a new record low on the black market against the dollar on Saturday, as the ongoing economic crisis continues to wipe out savings and raise the cost of living, unleashing widespread protests.
The lira has been pegged to the dollar at 1,507 since 1997, however, the country’s worst economic crisis in decades has seen its unofficial value plummet on the black market.
Exchange dealers told AFP that the pound was trading between 17,100 and 18,000 on the black market, losing 90% of its value against the dollar since 2019.
Lebanon’s National News Agency (NNA) reported that dozens of people took to the streets in the coastal city of Tripoli to denounce the devaluation of the currency and difficult living conditions.
Foreign exchange inflows dried up and dollars exited Lebanon. Banks no longer had enough dollars to pay depositors queuing outside, so they shut their doors.
Dollars flew off Lebanon, and banks no longer had enough greenback to pay depositors queuing outside.
Compounding problems, an explosion in August 2020 at Beirut port killed around 200 people and caused billions of dollars of damage.
Exacerbating the issue, an explosion in August 2020 in the port of Beirut killed about 200 people and caused billions of dollars in damage.