Beirut, (Business News Report) – The Lebanese pound has continued to bleed this year, to lose 15% of its value since the beginning of 2022.
The pressure on the Lebanese is increasing while the pound is losing its value in light of epidemic poverty.
On Monday, demonstrations swept the streets of Lebanon. Protesters burned tires, expressing their anger at the deteriorating economic situation amid the political stalemate.
“A person likes to live with hope, but there is no hope,” said Abdel Rahman al-Shaar, who runs a computer shop in downtown Beirut.
The Lebanese pound fell during trading on Tuesday to a record a level of more than 33,000 against the US dollar, down from about 30,000 during the weekend, and about 27,400 on December 31.
Before the economic crisis that erupted in October 2019 due to the accumulation of debt, the lira was trading at 1,500 against the dollar.
Political intransigence among Lebanon’s sectarian leaders has led to general frustration with unsustainable economic policies, and reduced inflows of foreign currency vital to the country’s economy.
Mikati formed a government in September with the aim of negotiating a support program from the International Monetary Fund and starting an economic recovery.
But he has not been able to hold any cabinet meeting since October 12 amid demands from Hezbollah and the Amal movement to suspend the investigation into the bloody explosion in Beirut in August 2020.
President Michel Aoun held a series of meetings on Monday and Tuesday in an attempt to mobilize support for the convening of the National Dialogue Conference to discuss the country’s economic crisis, among other issues. But so far, it has received the support of only close allies.
After a meeting with President Aoun, Muhammad Raad, head of Hezbollah’s parliamentary bloc, said: “The country is in a time of hardship and distress. And it is in dire need of not interrupting the dialogue.”
Others, including Aoun’s Christian opponents, rejected the proposal. Some said dialogue should wait until parliamentary elections in May. While others said that the Council of Ministers should meet first.