Tuesday, May 21, 2024

Lebanon ‘following in Venezuela’s footsteps’

Lebanon ‘following in Venezuela’s footsteps’

In less than 24 hours, Lebanon’s currency dropped in value by over 10,000 Lebanese pounds, with the exchange rate nearing 70,000 to the dollar — a plunge that comes at a time when Lebanese were dreading the exchange rate reaching 50,000 to the dollar.
Economist Jassem Ajaka told Arab News: “We are following in the footsteps of Venezuela. The central bank’s intervention to stop the local currency from depreciating this fast will not work as long as there is no government action.”

Ajaka said he believed that the problem lay in the Lebanese structure, lack of confidence in politics and judges, and the conflict with the international community over Lebanon’s failure to pay its debts.

To avoid losses, commercial and service institutions priced their products based on a much higher exchange rate, in anticipation of further devaluation. Such action significantly decreased citizens’ purchasing power.

The price of a 20-liter canister of fuel jumped by 147,000 Lebanese pounds within 24 hours, reaching 1,147,000 LBP ($19 based on the exchange rate of 60,000 LBP/USD), which is equivalent to the salary of a public sector employee.

The unstable exchange rate pushed the owners of grocery stores to either close for the day or stop selling certain products.

More protesters took to the streets in rural Lebanese areas on Friday, blocking roads with burning tires. The Baalbek International Road was completely cut off in protest against the economic situation. Protesters also blocked Al-Minya International Road in northern Lebanon in both directions, in protest against the deteriorating living conditions.

The Ministry of Economy issued a decision raising the price of a big bundle of Arab bread to 29,000 LBP (48 cents).

With prices soaring, some taxi drivers opted to stay in one region to avoid wasting fuel in traffic jams, constantly changing their fares depending on the exchange rate.

For the first time ever, the pharmacists’ syndicate in Lebanon called on its members to close their pharmacies in protest against the current situation.

“Pharmaceutical suppliers and warehouse owners completely stopped delivering medicines nearly a week ago. The syndicate of pharmaceutical importers will only deliver medicines now based on a daily issued price list, similar to gas stations,” the syndicate said in a statement.

Joe Salloum, head of the syndicate, said: “The price differences between the Ministry of Health index and the exchange rate on the black market are among the reasons that almost led to the sector completely collapsing.”

Robert, a pharmacist in Beirut, said that he sold a medicine based on the exchange rate of 50,000 LBP/USD, according to the Ministry of Health index, but the exchange rate on the black market later reached 61,000 LBP/USD, which means he can no longer buy the same medicine without incurring losses.

“Whatever I sell, I can no longer buy. Suppliers are barely delivering drugs and the exchange rate is always changing. Meanwhile, the list of missing medicines keeps getting longer,” he added.

Last week, the hospitals’ syndicate resorted to adopting a procedure that requires patients registered with the National Fund of Social Security to pay for the required medicines, because the state is unable to cover their costs for hospitals due to the unstable exchange rate.

Antoine Yammine, head of the syndicate of owners and investors of domestic gas cylinder filling plants, warned on Friday of the forced closure of plants due to the insane devaluation of the Lebanese pound, as the price of a domestic gas cylinder exceeded 730,000 LBP, about $12 (based on the exchange rate of 60,000 LBP/USD).

Yammine said: “Yesterday, the price list was priced according to the exchange rate of 60,600 LBP/USD, but it jumped to 64,000 LBP/USD on the back market today, which means that yesterday’s sales were all losses. Our capital is eroding by the day. The authorities must put an end to this farce.”

Meanwhile, parliamentary blocs are yet to agree on the election of a new Lebanese president.

Opposition MPs met on Friday after they had participated in Thursday’s protests of the families of the victims of the port explosion in front of the Ministry of Justice after Public Prosecutor Judge Ghassan Oueidat released all those that Judge Tarek Bitar had had arrested.

The MPs issued a statement, saying: “We support the demand for holding Judge Oueidat accountable for the flagrant violations he has committed,” expressing their rejection of removing Judge Bitar and assigning another judge to handle the probe.

They also warned against the dangers created by the presidential vacuum. They reiterated their call and commitment to the provisions of the constitution, which stipulate that parliament is an electoral body that convenes regularly until a president is elected.

Judge Bitar is expected to proceed with his investigations, despite all the judicial objections to the legal study that he referred to in order to resume his work after a 13-month hiatus.

Next week’s interrogation sessions are scheduled to begin on Feb. 6 with MP Ghazi Zeaiter and former minister Mohad Al-Machnouk.

Members of the Supreme Judicial Council and its head Judge Suhail Abboud are still at odds over the fate of Bitar, who is in charge of the probe into the Beirut Port explosion.

Oh ya 1 year ago
Do not feel left out Americans, the USD will follow suit now that Saudi has dumped the petro dollar, and the BRICS+ setting up a commodity back currency. You time is coming also be patient


Related Articles

El Salvador's Bitcoin Holdings Reach $350 Million
Teens Forming Friendships with AI Chatbots
WhatsApp Rolls Out Major Redesign
Neuralink's First Brain Implant Experiences Issue
Apple Unveils New iPad Pro with M4 Chip, Misleading AI Claims
OpenAI to Announce Google Search Competitor
Apple Apologizes for Controversial iPad Pro Ad Featuring Instrument Destruction
German politician of the AFD party, Marie-Thérèse Kaiser was just convicted & fined $6,000+
Changpeng Zhao Sentenced to Four Months in Jail
Biden Administration to Relax Marijuana Regulations
101-Year-Old Woman Mistaken for a Baby by American Airlines: Comical Mix-Up during Flight Check-in
King Charles and Camilla enjoying the Inuit voice singing performance in Canada.
New Study: Vaping May Lower Fertility in Women Trying to Get Pregnant
U.S. DOJ Seeks Three-Year Sentence for Binance Founder Changpeng Zhao
Headlines - Thursday, 23 April 2024
Illinois Woman Wins $45M Lawsuit Against Johnson & Johnson and Kenvue for Mesothelioma Linked to Baby Powder
Panama's lates news for Friday, April 19
Creative menu of a Pizza restaurant..
You can be a very successful player, but a player with character is another level!
Experience the Future of Dining: My Visit to an AI-Powered Burger Joint
Stabbing rampage terror attack in Sydney, at least four people killed, early reports that a baby was among those stabbed.
Iran fired more than 300 drones and missiles at Israel overnight. Israel Reports Light Damage After Iran Launches Large Strike.
I will never get enough of his videos and the pure joy and beauty of these women!!
Scientists at the University of Maryland have developed an "invisibility cloak", for AI using adversarial patterns on a sweater, making the wearer nearly undetectable to standard object detection methods.
Lamborghini Bids Farewell to Its Best-Selling Sports Car: The Huracán
Sam Bankman-Fried Appeals 25-Year Prison Sentence for $8bn FTX Fraud
OJ Simpson, ex-NFL star who was acquitted of murder, dies aged 76
British Backpacker Imprisoned in Notorious Bolivian Prison: Family Raises Funds for Legal Fight and Essentials
Argentina: Venezuela Cuts Power to Embassy after Opposition Meeting
El Salvador Offers 5,000 Passports to Skilled Foreign Workers: Tax-Free Relocation and Citizenship
Panama Papers Trial Begins: Founders of Mossack Fonseca Face Money-Laundering Charges
75 Becomes the New 65: Retiring in Your 60s Unrealistic as Life Expectancy Increases and Costs Rise
Total Solar Eclipse of 2021: 32 Million Witness the Mystical, $1.5bn Spectacle Sweep Across North America
New shopping experience…
New world, new reality, let’s get used to it
UK Company Passes Milestone in Developing Space-Based Solar Power, Aiming to Power a Million Homes and Provide Constant Energy
Mexico Breaks Diplomatic Ties with Ecuador after Police Storm Embassy, Arrest Former Vice President
Monty Python were so ahead of their time
If there's a will, there's a way!
Rules about how to dress are important, but not so much if you have a lot of money.
Body Armor Firm Showcases Stab-Proof Vest in Demo on CEO
Mexico Cuts Diplomatic Ties with Ecuador After Embassy Stormed in Quito
Here is a tattoo idea, for engineers
Zoraya Ter Beek, a 28-year-old woman from the Netherlands, will undergo euthanasia in May due to severe mental health challenges
Here's a video featuring Fidel Castro, where he discusses his stance against war and his commitment to preserving life, positions that have put him at odds with the USA:
Woman reaches behind and steals gun from a security guard and shoots three people while getting detained in Chile
Take a walk around the safe and thriving downtown San Salvador.
Joe Biden criticised by Trump campaign for declaring Transgender Day of Visibility on Easter Sunday
Macron says France will help Brazil develop nuclear-powered submarines
A video demonstrating women's self defense class in 1930