The Lebanese parliament approved a ration card law on June 30 by injecting $556 million exceptional credit in cash assistance to support the most vulnerable families, replacing the current subsidies system. The ration card program aims to support around 500,000 families through a cash payment of an average of $93 per month for one year.

Lebanon’s population is struggling to survive amid an economic collapse, with the depreciation of the local currency by over 90% that trapped 55% of the population into poverty, according to a report by the United Nations Economic and Social Commission for Western Asia.

Following the economic crisis in 2019, the central bank offered importers and traders an advantageous exchange rate to purchase fuel, wheat and medicine, and a food basket that consists of around 350 items, including coffee, cocoa powder and nuts.

Due to the crisis and a shortage of liquidity in US dollars, the central bank no longer has reserves available for subsidies, which cost $6 billion annually. Most subsidies have decreased or stopped, and the bank raised the exchange rate of fuel at the bank rate of 3,900 Lebanese pounds, while wheat and medicine are still subsidized at the official rate of 1,510 Lebanese pounds.