Lebanon's economy in disarray as leaders fights over currency issues
Lebanon's economy is in turmoil now as its currency has been heavily devalued. The covid-19 pandemic has thrown the nation into inflation with many citizens in poverty.
Politicians bicker as the economic fortunes of Lebanon declines
Many politicians in Lebanon have continued to fight this Monday about the formation of a new parliament as their economic problems continue to rise. Many demonstrators can be seen as various roadblocks and highways showing their display by burning tires due to the huge rate of unemployment and poverty in the country.
This comes as the nation's currency loses values amidst political problems. Notre Abouchkra a citizen said 'This isn't what we planned for, we want a country that will provide for its citizens, not a place where people go hungry. You can see that everywhere is in turmoil because of the economic mess our leaders have plunged into.' 'Over two months, the country is in disarray as the local currency dips and continues to do so.
Inflation has made Lebanon currency fall heavily
The Lebanese pound value declined to about 9,950 against the dollar two weeks ago, now it has gotten worse to more than 16,000 per dollar, losing more than 92% of its value m. However, officially, it is pegged at 1,600 a dollar which many economists believe isn't the true situation of things. Inflation and the covid-19 have contributed to the problems besieging Lebanon's currency. In response to the issue, the authorities have banned exchange sites and other platforms exchanging at informal prices.
Top Lebanese financial expert Sami Zoghelb said that these harsh decisions by the authorities will not affect devaluation. He advised the authorities to be more proactive as cases of infection rates may increase. He says, producing is the only way to solve this problem, rather than the importation of foreign goods. Investment in extractive firms is then the only way out.