Beirut, Feb. 14, (dpa/GNA) - The Lebanese pound on Tuesday has fallen to a record low against the US dollar, amid a worsening economic crisis and political deadlock.
The pound was trading at more than 70,000 to one US dollar for the first time since the economic crisis began in Lebanon in 2019.
Before that date, the Lebanese pound used to trade at 1,500 against the dollar.
Banks in Lebanon have applied strict withdrawal limits on foreign currency assets since 2019.
The curbs mean many depositors’ savings are frozen, leaving most people in the country struggling to make ends meet. Most Lebanese have deposits in banks in US dollars.
Since last week the Lebanese Bank Association announced an open-ended strike to protest a court ruling that ordered a bank to pay one of its depositers in full.
Banks insist they cannot afford to pay every depositer in full.
Since the bank association decision, customers have been standing in long queues to try to withdraw their money from cash machines.
During the economic crisis, poverty in Lebanon has drastically increased and now affects more than 74% of the population, according to a UN report.
The crisis is snowballing as Lebanon’s 128-member parliament has failed time and again to elect a head of state after the term of former president Michel Aoun ended in October.
GNA