Analysts identify collapse of Lebanese pound caused by political uncertainty

The Lebanese pound has entered a new phase of collapse, represented by its historic plunge to the level of 100 thousand Lebanese pounds per dollar in the parallel market. This is a new figure in the path of long suffering experienced by the Lebanese currency since the end of 2019. This record level was set at a time when banks resumed an open strike on Tuesday. The official exchange rate was set at 15,000 pounds to the dollar in February.

Steady deterioration

The Lebanese currency has been in a state of decline over the past four years. The official Lebanese pound price was 1,520 pounds to the dollar, a price that has remained stable for many years. However, the Lebanese currency has been on a declining path since the end of 2019, when the country was plunged into a political and economic crisis.

Very difficult

Shadi Nachabe, a Lebanese political analyst, said: “The social and economic situation in the country is very difficult, confirming that this crisis will not be resolved without the presence of a new president in Lebanon as soon as possible, as an entry point for starting the process of economic reform and getting out of the current crises that led to the great collapse that the country is witnessing at that time.”

The Lebanese political analyst added that the factors leading to the collapse of the lira are known, the most prominent of which is the political turmoil witnessed in the country. In the past few hours, there were new factors, represented by the return of Lebanese banks to carry out an open strike, which caused a new disturbance in the financial situation in the country.

For his part, Maher Maklad, a writer specialized in Lebanese affairs, said that Lebanon is impatient with the new developments in the regional arena and the extent of their positive impact on the Lebanese presidential election file. Since the departure of former President Michel Aoun in October last year from Baabda Palace after the end of his term, the Lebanese Parliament was unable to elect a new President of the Republic, despite holding more than 14 sessions, and the presidential palace and the presidential chair remain vacant .

Strong challenges

He added that Lebanon is going through major challenges on all levels and is greatly affected by the global economic crisis and the declining economic situation of the Lebanese state. Is it not hidden from one of the positions of the Lebanese currency in relation to the U.S. dollar, as it recorded very large rates of decline that lost its weight against the dollar, which has a negative impact on the elements of public life, and citizens bear unprecedented pressures in order to provide for the necessities of life?and that the importance of Lebanon’s success in electing a president and forming a government with full powers in these circumstances is not open to debate. The situation of all politicians there is the same because the economic situation does not exclude anyone and all people of different sects are facing the same fate.

Extended crisis

He added that the crisis of electing the Lebanese president is not an internal crisis at all, but rather one that has implications for regional powers that are very influential in the Lebanese file through political forces that ally with them at home, which puts the issue of electing the president in a vicious circle that is difficult to go through without regional understandings.

Estimates suggest that the presidential vacuum will continue for months to come. In light of this reality, it is inevitable that the current government will continue to work to spare Lebanon further dangers, prevent the crisis from developing to the worst, provide for the needs of the people according to available means, and try to control the stability of the currency.