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Lebanon: the forced dollarization of a bankrupt country

2023-03-10T16:59:08.568Z


STORY - The greenback is essential in the daily life of the Lebanese in a context of hyperinflation. At the entrance to a supermarket in Beirut, the exchange rate is displayed roughly: 82,000 Lebanese pounds per dollar. It will evolve during the day according to market fluctuations. In a country in full economic collapse, which imports 80% of its consumption needs and where the local currency has lost more than 98% of its value since the start of the crisis in 2019, the interim Ministry of the Ec


At the entrance to a supermarket in Beirut, the exchange rate is displayed roughly: 82,000 Lebanese pounds per dollar.

It will evolve during the day according to market fluctuations.

In a country in full economic collapse, which imports 80% of its consumption needs and where the local currency has lost more than 98% of its value since the start of the crisis in 2019, the interim Ministry of the Economy (the country has been without a government since May) has authorized large retailers to display their prices in American currency, with payments still being accepted in pounds.

"

In dollars, we have a 'real' vision of prices"

, welcomes a customer for whom, like almost all Lebanese, the greenback is the currency of reference.

But since the fixed parity of 1,500 pounds to the dollar, which prevailed for three decades, no longer holds, the smallest sum received in pounds is immediately converted, which feeds the cycle of devaluation and hyperinflation.

According to the World Bank...

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Source: lefigaro

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