The Lebanese pound on Thursday came close to the threshold of 5,000 pounds for a dollar in exchange offices, an accelerated tumble which has provoked demonstrations against the authorities accused of corruption in a country in the midst of an economic sinking. This depreciation comes at a time when the government is negotiating with the International Monetary Fund (IMF) to help stop the economic collapse, one of the vectors of the unprecedented uprising launched in October against a political class accused of incompetence.
Demonstrations accompanied by road blockages erupted Thursday evening across Lebanon, the police sometimes intervening with tear gas. Dozens of protesters gathered at a key crossroads in central Beirut, said an AFP journalist. "Thief, thief, Riad Salamé is a thief," they chanted, referring to the governor of the Central Bank. They also chanted unity slogans after sectarian clashes last weekend. Unprecedented, they were joined by dozens of young people on motorbikes from a nearby Shia neighborhood, whose residents had previously attacked anti-government rallies.
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"People can't take it anymore, that's enough," said Haitham, demonstrating in central Beirut, citing the depreciation. “People have no job, no food. They cannot buy medicines, diapers or milk for children, ”he protested. Authorities expect 50% inflation for 2020.
In the center of the capital, near Riad al-Solh square, the security forces fired tear gas to disperse demonstrators who threw stones, according to local television. In Tripoli, a large northern city, the army also fired tear gas to disperse demonstrators who had tried to invest in the local branch of the Central Bank, according to the state agency ANI, which reported eight wounded . A shot of Molotov cocktails set fire to the trees in front of the building, according to an AFP correspondent. Protesters mobilized on the highway north of Beirut, in Tire but also in Saida (south) where dumpsters were set on fire, according to ANI.
Inflation explodes
Officially, the national currency has been indexed on the greenback since 1997 at the fixed rate of 1,507 pounds for one dollar, but since October 2019 it has continued to fall in exchange offices. A money changer in Beirut said it bought the dollar for 4,800 pounds, and resold it for 5,000 pounds. Another, in the southern suburbs, bought the dollar for 4,850 pounds. In the south of the country, a customer claimed to have sold dollars at the rate of 4,750 pounds. In the evening, local media even mentioned an exchange rate of 6,000 pounds for the dollar. The syndicate of exchange offices fixed for Thursday the purchase of a dollar at 3,890 pounds, against a ceiling on the sale of 3,940 pounds.
Thursday evening, the Central Bank denied in a statement information "without foundation" on "exchange rates at levels far from reality" .
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The economic crisis is the most serious since the end of the civil war (1975-1990). Unemployment affects more than 35% of the working population and more than 45% of the population lives below the poverty line, according to the Ministry of Finance. Prime Minister Hassan Diab's services announced an "urgent" government meeting on Friday on "the monetary situation" . The depreciation has led to an explosion in inflation affecting imports, whether for household appliances, furniture or auto parts. Nabil, 64, retired, wanted to buy a refrigerator. The seller claimed "$ 1,200 or the equivalent at the rate of 5,000 pounds, or six million pounds," he said. "It's double what I get every month for my retirement . "
Triggered on October 17, 2019, the uprising saw some days hundreds of thousands of Lebanese beat the pavement to shout their exasperation, denouncing the failure of basic services and a deterioration in living conditions. For the International Crisis Group (ICG) think tank, Lebanon needs international aid to get out of the crisis, but it must be conditioned on the adoption of reforms long ignored by the political class.
