Lebanon: crisis, tension high over increase in bread, oil prices

Lira continues to lose value compared to dollar

11 January, 16:44

    (ANSAmed) - BEIRUT, JANUARY 11 - Tension is once again high in Lebanon after over the past few hours the local lira lost value again compared to the US dollar while prices of bread and oil grew across the country.

    Media in Beirut reported episodes of tension in various regions of the country amid renewed protests following a hike in prices of primary goods. The union of bakers said that if ingredients will not arrive from abroad, bakeries will stop producing bread within two weeks. Similarly, the union of gas stations warned about possible new blockades in the distribution of oil in the coming days ahead of a rationing of fuel.

    On the foreign exchange market, a dollar today was worth 33,000 liras, a surprising negative record considering the fact that the dollar was exchanged at the end of 2019 at a fixed rate of 1,500 liras. The lira lost over 95% of its value in two years. Lebanon has been in economic default since March 2020.

    The Lebanese banking system went bankrupt and since then control of capital in foreign currency has been de facto imposed to small and medium-sized account holders. The inflation and unemployment rates are continuing to rise in a context of social and political tension. (ANSAmed).

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