The Middle East’s crumbling currencies in 2023 – The National

The Middle East’s crumbling currencies in 2023 – The National

After a difficult 2022 for many in the Middle East, there have naturally been hopes that the start of 2023 might bring reprieve. One of the biggest issues facing a number of countries in the region is plummeting national currencies. With the new year barely under way, there is already evidence to suggest that the situation on that front is going to get worse in 2023, not better.

An indicator of how bad things are in a number of countries is the rising cost of prices. In Lebanon, inflation surged by 171.2 per cent in 2022. It is little surprise that the World Bank calls the country's economic crisis one of the worst in history. There are ways for the situation to improve. Inflation in Sudan reached about 380 per cent in 2021. That started to decline last year after economic reforms.

Lebanon will need more than new policies, but political will, too. Time is not on its side. Last week, for example, the International Monetary Fund (IMF) said that the country's tax revenue more than halved between 2019 and 2021.