Lebanon is another country in the world that is experiencing what high inflation means in practice. Demonstrations took place yesterday in Beirut and other cities. Citizens of the country are desperate. They lose their savings and their withdrawals are worth nothing. This is the effect of the fall of the Lebanese pound.
Lebanon and high inflation
Protests began in October last year. Since then, the Lebanese pound has lost 70 percent. its value. The protesters direct their rage against banks. Their troops plunder, many buildings have already been burned and plundered. In Beirut, demonstrators even threw Molotov cocktails to the police. In Tripoli, stones were thrown into the army.
The situation was worsened by the introduction of restrictions on the payment of hard currency, including US dollars, by banks. As a result, Lebanese people deprived of access to their dollar accounts, which were a rescue for them during the economic crisis.
“We went out into the streets because none of our demands were met. We got the premiere, which is even worse than the previous one. Today the dollar has reached 7,000. Lebanese pounds. We can’t afford food, pay rent or anything. We will stay here until the dollar falls and our demands are met. “
– told the media one participant in the Beirut demonstration, who introduced himself as Manal.
“Lebanon has always been chaotic and it seems that our efforts will change nothing, so let there be more chaos”
– added another, this time anonymous.
What are the authorities doing?
How do politicians react to this? Prime Minister Hassan Diab organized an extraordinary cabinet meeting yesterday to discuss the current situation. The government has announced that it will soon take steps to stabilize the situation. President Michel Aoun promised that the central bank would send more US dollars to the market to limit the decline in the national currency.
However, more and more facts show that the situation may get out of control and resemble that of the period preceding the civil war that broke out in 1975.