Lebanese citizens see no relief as economic downturn worsens
Amid plans to lift subsidies and private universities’ decision to raise tuition fees, the Lebanese people continue to suffer under the country’s crumbling economy with no end in sight.
BEIRUT — The economic and living situation in Lebanon is ever-worsening. A large part of the population is unable to secure their most basic needs of food, medicine and education, as prices of goods and services are rising while the local currency continues to deprecite against the dollar. The Lebanese are losing their purchasing power with many having lost their jobs due to the financial crisis that has plagued the country since 2019. Then came the Beirut port explosion on Aug. 4, which killed more than 200 people, injured 6,000 others and destroyed much of the capital.
The Lebanese authorities are now planning to lift subsidies on basic commodities, namely flour, fuel, medicines, subsidized food commodities and medical supplies, which could have disastrous social repercussions on most of the Lebanese people.
Lebanon's central bank, Banque du Liban (BDL), subsidizes basic commodities based on the official exchange rate of 1,515 Lebanese pounds per US dollar, meaning that it secures the importers’ need of dollars to buy the aforementioned commodities — while the dollar value on the black market exceeds 8,000 pounds per US dollar.
BDL Gov. Riad Salameh said in a Dec.1 interview on Al-Hadath, “The BDL is only able to maintain support for basic commodities in the country for two more months,” noting that at least $600 million is withdrawn a month to subsidize commodities and meet the needs of the Lebanese.
