‘Economic massacre’: Lebanon dollarizes economy as pound plunges

‘Economic massacre’: Lebanon dollarizes economy as pound plunges

BEIRUT: Escalating political confusion sent the Lebanese pound plummeting to a new low on the black market, trading at 90,000 pounds to the dollar on Wednesday.

The latest plunge in the local currency means the exchange rate is more than 60 times lower than the base rate of 1,500 LBP/USD that has been in place for the past three years.

Amid warnings of looming economic chaos, the Finance Ministry set the price of the customs dollar at 45,000 Lebanese pounds so the state treasury could pay public sector salaries.

The ministry pegged the value at 15,000 pounds only a few weeks ago.

Shops and supermarkets also began to price products in dollars on Wednesday.

Economists and political experts predicted the Lebanese pound would drop to 100,000 to the dollar soon.

Meanwhile, a man stormed a Creditbank branch in Sidon, southern Beirut, and threatened to set it ablaze if he was denied access to his savings. The man ended up leaving the bank without getting his money after being assured he would face no criminal charges.

Economist Jassem Ajaka said that “there is no end to the hole the country has slipped into,” adding: “The worst is yet to come and