Dealers say Lebanese pound hits historic low

BEIRUT — The Lebanese pound sank to a historic low against the dollar on the parallel market on Tuesday, the latest somber milestone in an economic meltdown that has plunged most of the population into poverty.

Officially pegged at 15,000 to the dollar, the pound was trading at 100,000 against the greenback, dealers said — a dizzying plunge from 1,507 before the economic crisis hit in 2019, Agence France-Presse reported.

The currency's market value was at around 60,000 to the dollar in late January.

The currency plunge has triggered price hikes including on fuel, food and other basic goods, with supermarkets this month starting to price items in dollars.

Despite the gravity of the crisis, the political elite, which has been widely blamed for the country's financial collapse, has failed to take action.

Since last year, the country has had no president and only a caretaker government, amid persistent deadlock between rival political factions.

"The lira has become completely worthless," said Abu Abbas, 75, who owns a small jewelry stall on Beirut's busy Hamra Street and barely making ends meet.

"I used to buy medicine for my wife for 40,000 pounds, now it costs 900,000," he said.

Banks, which have imposed draconian withdrawal restrictions, were closed on Tuesday.

Withdrawal limits have sparked public outrage that has seen some Lebanese resort to armed holdups to lay hands on their own money.

The facades of many banks in the capital are almost unrecognizable from the outside, covered in protective metal panels, while ATMs have been vandalized.

Agencies via Xinhua