More than three years into the worst economic and financial crisis in Lebanon’s history, discord among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform plan to salvage the country. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and critical reform ratification, deepening the woes of the Lebanese people.
Lebanon's central bank will adopt an exchange rate of 15,000 Lebanese pounds per U.S. dollar as of Feb. 1 as part of a process to unify the country's multiple exchange-rate system, Lebanese central bank governor Riad Salameh said on Monday.
Lebanon plans to drastically raise taxes to boost the cash-strapped state’s revenues, but experts fear that the Lebanese will not be able to pay the new rates after three years of economic collapse, which pushed more than three quarters of the population into poverty.
Oil prices slid on Wednesday as COVID-19 cases in China continued to climb, sparking worries of lower fuel demand in the world's top crude importer that outweighed concerns about an escalation of geopolitical tensions and tighter oil supply.
Cash-strapped Lebanon is hoping to fill state coffers by raising the exchange rate for taxes, fees and customs duties, Caretaker Finance Minister Youssef Khalil told The National, as the country reels from three years of economic collapse.
The dollar headed for its biggest two-day drop in almost 14 years on Friday, as investors piled into riskier assets after a cooler reading of U.S. inflation helped temper expectations for the Federal Reserve to keep raising rates as quickly.