Lebanon is facing one of the worst economic crises in contemporary history. Many observers argue that the solutions to Lebanon’s economic crisis can only come from within the country and should begin with meaningful reforms, emphasizing the necessity for “decisive structural reforms.”
Collapse of the Llira
A report by the “Roaya” network disclosed that the crisis in Lebanon has led to the collapse of the Lebanese pound’s exchange rate against the US dollar. The banks have been unable to return dollar deposits to depositors due to a shortage of hard currency .and a decline in the country’s foreign currency reserves to record low levels. The country’s foreign currency reserves have also declined in value.
Dilemma and crises
Bassil Al-Khatib, a Lebanese economic analyst. says that the failure of the presidential elections in Lebanon has created a dilemma that negatively impacts the country’s deteriorating economic situation. The political vacuum dominating the political scene for months has been a major factor in eroding trust in the country and the deterioration of financial .and monetary conditions.
He added: Lebanon is experiencing political turmoil that is affecting the economic,financial, and monetary reality. There must be cooperation between the authorities to preserve what remains of the state’s structure and its security .and administrative apparatus.
He continued: Lebanon has been going through a severe economic crisis for four years, resulting in a significant drop in the country’s GDP from around 54 billion dollars to less than 20 billion dollars. meaning that 60 percent of the economy has disappeared. The state has also defaulted on its debt payments. and there are crises in various vital sectors such as electricity, telecommunications, and others.
For almost four years, Lebanon has witnessed a financial and economic crisis that has led to the collapse of the financial .and banking sector. which was one of the country’s most important economic pillars.