The Lebanese pound has fallen to its lowest level in more than 70 years

by **RamblerNash** Tue Dec 14, 2021 9:23 pm

12/13/2021

Economy News _ Baghdad

The Lebanese pound continued its decline on the black market, on Monday, to reach its lowest level ever, at 26,350 pounds against the US dollar, as a result of the deteriorating internal political situation, and the crisis with the Gulf states, the main financial supporter of Lebanon.

Dealers in the parallel market indicated that there are fears that the lira will continue to decline in the coming days, reaching 30,000 for the dollar, in the absence of any internal breakthrough or in the crisis with the Gulf countries.

They pointed out that the level that the lira has not reached since Lebanon gained its independence from the French mandate, more than 70 years ago. According to the network toss.

They believed that there is a state of pessimism prevailing in the market now, because the Council of Ministers has not convened for more than a month, given the differences between some of the political and partisan parties that govern Lebanon.

The lira jumped by more than 20% immediately after the announcement of the formation of the government headed by Najib Mikati last September, before returning to decline as a result of successive crises.

Since the outbreak of the worst financial crisis in Lebanon in late 2019, the lira has lost more than 90% of its real value against the dollar; This led to an increase in the poverty rate of more than 50% and an increase in the prices of consumer goods by more than 500%.

The Central Bank of Lebanon is still sticking to an official rate of 1,507 pounds to the US dollar, but it has finally decided to stop most forms of support for imports of basic commodities, medicine and fuel, which cost it more than $500 million annually.

Lebanon is suffering from a severe crisis as a result of the accumulation of government debts, which amounted to 98.2 billion dollars at the end of last August, or more than 170 percent of the gross domestic product, due to the spread of corruption and the accumulation of budget deficits in the past decade.

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