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’s 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 “shortages have been worsening across the board.”
Lebanese Pound Sinks to a New Low Against the Greenback, Country’s Monetary System Is Collapsing
On Sunday, June 13, 2021, the Lebanese pound (LPB) dropped to 1,501 against the U.S. dollar or 0.00066 LBP per USD. The country’s economic crisis which started in 2019 has continued to wreak havoc on the Lebanese economy.
Essentially, the Lebanese government overspent reserves, leveraged foreign aid, and “balanced its books with tourism receipts” after the civil war. The country’s leaders borrowed to build skyscrapers, eateries and designer boutiques, luxury shopping malls, and more. Reports note that it was so bad after the civil war, economists referred to Lebanon’s financial system as a “nationally regulated Ponzi scheme.”
“The deliberate depression” is perhaps the most accurate description of the unprecedented economic collapse in Lebanon.
Policy inaction is no accident. Policy inaction is a political choice.
— Mohamad Faour محمد فاعور (@Mohdfaour89) June 13, 2021
The latest accounts on Sunday from Reuters detail that the country’s economy is in deep turmoil and highlight how Beirut’s electrical plants can’t even keep the grid going regularly. Other accounts littered across social media tell the worsening tale of Lebanon’s current financial crisis.
“Lebanon’s 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’s economy…