BEIRUT: In less than 24 hours, Lebanon’s currency fell in value by more than 10,000 Lebanese pounds, taking the exchange rate closer to $70,000 – a plunge that comes at a time when Lebanese are dreading the exchange rate reaching $50,000. .
Economist Jassem Ajaka told Arab News: “We are following in the footsteps of Venezuela. Central bank intervention to stop the local currency from devaluing this quickly will not work unless there is some government action.
Ajaka said he believes the problem lies in a lack of trust in Lebanese structures, politics and judges, and in conflict with the international community over Lebanon’s failure to pay its debts.
To avoid losses, commercial and service institutions price their products based on a very high exchange rate, in anticipation of further devaluation. Such action has significantly reduced the purchasing power of the citizens.
The price of a 20-liter canister of fuel rose by 147,000 Lebanese pounds within 24 hours, reaching 1,147,000 LBP ($19 based on an exchange rate of 60,000 LBP/USD), which is equivalent to a public sector employee’s salary.
The volatile exchange rate forced grocery store owners to either close for the day or stop selling some products.
More protesters took to the streets in rural Lebanese areas on Friday to block roads by burning tyres. The Baalbek International Road was completely cut off in protest of the economic situation. Protesters also blocked the Al-Minya International Road in both directions in northern Lebanon in protest of deteriorating living conditions.
The Ministry of Economy issued a decision to raise the price of a large bundle of Arab bread to 29,000 LBP (48 cents).
With prices rising, some taxi drivers chose to stay in one area to avoid wasting fuel in traffic jams, constantly changing their fares based on the exchange rate.
For the first time, the Pharmacists Syndicate in Lebanon called on its members to close their pharmacies in protest of the current situation.
“Pharmaceutical suppliers and warehouse owners had completely stopped the delivery of medicines about a week ago. The drug importers’ syndicate will now only deliver medicines on the basis of a daily issued price list similar to that of gas stations, the syndicate said in a statement.
Joe Saloum, head of the syndicate, said: “The price difference between the index of the Ministry of Health and the exchange rate on the black market is among the reasons why the sector has almost completely collapsed.”
Robert, a pharmacist in Beirut, said he sold a drug based on an exchange rate of 50,000 LBP/USD according to the Ministry of Health’s index, but later the exchange rate on the black market reached 61,000 LBP/USD, meaning he Can’t buy the same medicine without incurring losses.
“Whatever I sell, I can’t buy anymore. Suppliers are barely supplying drugs and the exchange rate is always changing. Meanwhile, the list of missing drugs is getting longer.
Last week, the syndicate of hospitals resorted to adopting a process that requires patients registered with the National Fund of Social Security to pay for essential drugs, as the volatile exchange rate makes it difficult for state hospitals to cover their costs. unable to.
The head of a syndicate of owners and investors of domestic gas cylinder filling plants, Antoine Yamine, on Friday warned of forced closure of plants due to the insane devaluation of the Lebanese pound, as the price of a domestic gas cylinder skyrocketed by almost 730,000 LBP. $12 (based on an exchange rate of 60,000 LBP/USD).
Yammine said: “Yesterday, the price list was priced at 60,600 LBP/USD according to the exchange rate, but it jumped to 64,000 LBP/USD today in the back market, which means that yesterday’s sale was all in losses. Our capital It is disappearing day by day.The authorities should end this farce.
Meanwhile, parliamentary blocs have not yet agreed on the election of a new Lebanese president.
Opposition lawmakers met on Friday as they took part in a protest by the families of the victims of the port explosion in front of the Justice Ministry on Thursday after Public Prosecutor Judge Ghassan Ouedt ordered Judge Tarek Bitter to release all those arrested .
The lawmakers issued a statement saying: “We support the demand to hold Judge Ouedt accountable for the gross violations he committed,” calling for the removal of Judge Bitar and the appointment of another judge to handle the investigation. expressing disapproval of.
He also cautioned against the dangers posed by a presidential vacancy. He reiterated his call and commitment to the provisions of the Constitution, which stipulate that Parliament is an electoral body that convenes regularly until the President is elected.
Judge Bitter is expected to go ahead with his inquiry despite all judicial objections to the legal study referred to resuming his work after a gap of 13 months.
Next week’s questioning sessions are due to begin on 6 February with MP Ghazi Zeiter and former minister Mohd al-Machnouk.
Members of the Supreme Judicial Council and its chief judge, Suhail Aboud, are still in limbo over the fate of Bitar, who is in charge of the Beirut Port blast investigation.