{"id":8226,"date":"2021-06-14T06:54:03","date_gmt":"2021-06-14T06:54:03","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/lebanese-economy-crashes-to-new-lows-in-less-than-two-years-nations-currency-lost-90-against-the-us-dollar\/"},"modified":"2021-06-14T06:54:03","modified_gmt":"2021-06-14T06:54:03","slug":"lebanese-economy-crashes-to-new-lows-in-less-than-two-years-nations-currency-lost-90-against-the-us-dollar","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/lebanese-economy-crashes-to-new-lows-in-less-than-two-years-nations-currency-lost-90-against-the-us-dollar\/","title":{"rendered":"Lebanese Economy Crashes to New Lows \u2013 In Less Than Two Years Nation\u2019s Currency Lost 90% Against the US Dollar"},"content":{"rendered":"

The Lebanese pound dropped to a new low on Sunday against the greenback trading in the low 1,500s range to the U.S. dollar. Lebanon\u2019s currency has been in a downward spiral since 2019, as the pound has lost 90% of its value since then. Reports note that Lebanese citizens are facing shortfalls on basic goods like food and medicine, as attestations say \u201cshortages have been worsening across the board.\u201d<\/strong><\/p>\n

Lebanese Pound Sinks to a New Low Against the Greenback, Country\u2019s Monetary System Is Collapsing<\/h2>\n

On Sunday, June 13, 2021, the Lebanese pound<\/a> (LPB) dropped to 1,501 against the U.S. dollar or 0.00066 LBP per USD. The country\u2019s economic crisis which started in 2019 has continued to wreak havoc on the Lebanese economy.<\/p>\n

Essentially, the Lebanese government overspent reserves<\/a>, leveraged foreign aid, and \u201cbalanced its books with tourism receipts\u201d after the civil war. The country\u2019s leaders borrowed to build skyscrapers, eateries and designer boutiques, luxury shopping malls, and more. Reports<\/a> note that it was so bad after the civil war, economists referred to Lebanon\u2019s financial system as a \u201cnationally regulated Ponzi scheme.\u201d<\/p>\n

“The deliberate depression” is perhaps the most accurate description of the unprecedented economic collapse in Lebanon.<\/p>\n

Policy inaction is no accident. Policy inaction is a political choice.<\/p>\n

\u2014 Mohamad Faour \u0645\u062d\u0645\u062f \u0641\u0627\u0639\u0648\u0631 (@Mohdfaour89) June 13, 2021<\/a><\/p>\n<\/p>\n

The latest accounts<\/a> on Sunday from Reuters detail that the country\u2019s economy is in deep turmoil and highlight how Beirut\u2019s electrical plants can\u2019t even keep the grid going regularly. Other accounts littered across social media tell the worsening tale of Lebanon\u2019s current financial crisis.<\/p>\n

\u201cLebanon\u2019s social fabric is changing rapidly: people falling into poverty, those who can are leaving the country, and you have those who are making money on the backs of others. This crisis is worse than the 1980s when Lebanon\u2019s economy collapsed,\u201d one individual tweeted<\/a> this week about the situation.<\/p>\n

“Already accomplices to this economic collapse due to years of corruption and mismanagement, #Lebanon<\/a>\u2019s leaders have been reviled for their limited response.<\/p>\n

\u2014 Meray | \u0645\u0650\u064a\u0631\u0627\u064a (@MerayMaddah) June 11, 2021<\/a><\/p>\n<\/p>\n

\u201cTimes are tough in Lebanon; the economy\u2019s in shambles; people are worried,\u201d another account of the economic situation in Lebanon details<\/a>.<\/p>\n

A group that discusses the \u201congoing socio-economic conversations\u201d called \u201cThe Democratic Economy<\/a>\u201d asked its Twitter followers about the situation. The account asked its followers if they thought introducing cryptocurrencies, as a possible solution to Lebanon\u2019s economic troubles would be a good idea. The Twitter account @Democraticecon said<\/a>:<\/p>\n

In light of the financial crisis and the collapse of the monetary system in Lebanon, people are looking for alternative systems to banks and solutions to the current crisis. One of the proposed scenarios is the use of digital currencies. What about Cryptocurrency?<\/p>\n

LBP paired against USD on Sunday, June 13, 2021.<\/p>\n

Lebanese Petrol Stations Bare, Pharmacies Strike, Power Companies Can\u2019t Keep the Grid Going, Dollar Accounts Still Frozen<\/h2>\n

\u201cGas stations in Lebanon going out of business,\u201d one individual further wrote<\/a> on Friday. Reuters confirms the issues with petroleum stations and notes there are long lines at existing gas stations and fights starting over who can fill their automobiles with gas first. Pharmacies are not operating because of medicine shortages and a few hospitals are choosing to do emergency services only.<\/p>\n

Lebanon\u2019s prime minister-designate Saad al-Hariri and president Michel Aoun attempted to address the situation. But both leaders have been having issues holding the political reigns after numerous Lebanese officials resigned following the Beirut port blast in August.<\/p>\n

Protests in #Lebanon<\/a> condemning the economic collapse and a strike by pharmacies. pic.twitter.com\/Yn0bDOrDPp<\/a><\/p>\n

\u2014 Jamaila (@jamaila_morgan) June 12, 2021<\/a><\/p>\n<\/p>\n

Additionally, people have been worried about the country\u2019s solvency issues, as Lebanese banks locked depositors out of their dollar accounts last year. Then the central bank said funds could be withdrawn but at a rate of 3,900 pounds to a single U.S. dollar. Depositors with USD were promised that next month they could get better access to their funds.<\/p>\n

“The Lebanese people are held hostage by the Iranian militia”<\/p>\n

Meeting with Minister and Major General Ashraf Rifi @Ashraf_Rifi<\/a>
On Iran’s Penetration in Lebanon, economic Collapse, and Lebanon’s Relations with the Gulf
Via: Dr. @tarekchindeb<\/a> https:\/\/t.co\/x0mpZXtJVl<\/a><\/p>\n

\u2014 Koh Nagao (@KohNagao) June 5, 2021<\/a><\/p>\n<\/p>\n

The funds could be withdrawn, at a rate not exactly close to the global average, but much closer than the one-third withdrawal offering that was allowed previously. However, the International Monetary Fund (IMF) had denounced<\/a> Lebanon\u2019s dollar deposit withdrawal scheme on Thursday and stressed the country needs to fix its economic policy and issue broader reforms.<\/p>\n

<\/p>\n

While Lebonese Officials Court the IMF, Citizens Go Without Manoucheh<\/h2>\n

The IMF wants to negotiate<\/a> with Lebanon and believes the country\u2019s impending capital control law and the proposal for dollar deposit withdrawals could lead to much higher inflation. Meanwhile, much of this negotiating with the IMF is essentially just bureaucrats and Lebanese high-net-worth individuals.<\/p>\n

The majority of the nation is drowning with infrastructure issues, as the nation\u2019s residents can\u2019t even afford basics like clean water and manoucheh. Reports<\/a> detail that even in Beirut\u2019s most affluent neighborhoods, small manoucheh furns (bakeries) can\u2019t stay in business because no one has funds. The country\u2019s wealthy, besides the current bureaucrats running the nation state, have all left Lebanon long ago.<\/p>\n

What do you think about the issues with the Lebanese pound losing considerable value against the U.S. dollar this week? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

Bitcoin News
\nEconomics, 2019, Beirut, dollar deposit, dollar deposit withdrawal, economic collapse, gas stations, hospitals, IMF, infrastructure issues, Lebanese, Lebanese economy, Lebanese pund, Lebanon, Manoucheh, Michel Aoun, overspending, port blast, pound, power outages, Saad al-Hariri, shortages, USD<\/p>\n","protected":false},"excerpt":{"rendered":"

The Lebanese pound dropped to a new low on Sunday against the greenback trading in the low 1,500s range to the U.S. dollar. Lebanon\u2019s currency has been in a downward spiral since 2019, as the pound has lost 90% of its value since then. Reports note that Lebanese citizens are facing shortfalls on basic goods…<\/p>\n","protected":false},"author":0,"featured_media":8227,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-8226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8226"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=8226"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8226\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/8227"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=8226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=8226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=8226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}