Why cash is king in Lebanon’s spluttering economy

SourceArabian Business
SectorEconomy
CountryLebanon

Lebanon's Central Bank (BDL) has issued a series of circulars aimed at absorbing liquidity in local currency and combating the hoarding of subsidised imports, following the fall of the Lebanese pound on the parallel market and the shortage of many basic goods such as fuel and drugs. The move comes after the BDL had increased the amount of total pounds in circulation by 125 percent since the beginning of 2020. World Bank survey shows quality of life is expected to worsen in Lebanon over next five years In 10 months, BDL has injected LBP13 trillion in the market, which is higher than the total printed pound from 1977 until the end of 2019. Currency in circulation rose from $7 billion at end-December 2019 to $21.6 billion in September, with the excessive Lebanese pounds adding ...read more...