Lebanese Pound Slumps to 10,000 to the Dollar, Bread Price Rises by 50%

Lebanese pound notes change hands at a currency exchange in Beirut. (Reuters)
Lebanese pound notes change hands at a currency exchange in Beirut. (Reuters)
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Lebanese Pound Slumps to 10,000 to the Dollar, Bread Price Rises by 50%

Lebanese pound notes change hands at a currency exchange in Beirut. (Reuters)
Lebanese pound notes change hands at a currency exchange in Beirut. (Reuters)

The value of the Lebanese currency against the US dollar dropped to an unprecedented level on the black market on Thursday, almost reaching LBP 10,000 to the dollar.

Economic expert Jean Tawileh said the sharp deterioration was the result of the increasing demand by importers for dollars from the black market over the past weeks, due to the failure of the Central Bank of Lebanon (BDL) to open credits for subsidized goods.

In remarks to Asharq Al-Awsat, Tawileh noted that the BDL’s reserves in foreign currencies were no longer sufficient to maintain subsidies.

Consequently, certain goods are no longer subsidized, but no official announcement was made in this regard, he said.

“This method is similar to giving a sedative pill to a critically ill patient and will not last for long,” Tawileh warned, adding: “Sooner or later, the support will stop due to the depletion of reserves, especially since no dollars will enter Lebanon before a political solution is reached, and after the adoption of an economic plan based on supporting local production and attracting foreign investments.”

The expert noted that that as long as the situation remains the same, the price of the dollar will continue to rise. He explained that the BDL was printing banknotes in Lebanese currency on a monthly basis, in order to secure depositors’ funds based on the platform’s exchange rate of LBP 3,900 pounds to the dollar, and to pay public sector salaries.

He stressed that the solution lied in the adoption of a clear economic plan that would restore the confidence of the international community and ensure the entry of fresh dollars before an imminent social explosion.

The head of the Food Importers Syndicate, Hani Bohsali, told Asharq Al-Awsat that the import of subsidized goods within the food basket has decreased significantly, due to the BDL’s delay in approving credits.

The price of gasoline, which the BDL secures 85 percent of its import on the official rate of LBP 1,500 to the dollar, rose by 30 percent over the past weeks. In remarks to Asharq Al-Awsat, the representative of fuel distributors, Fadi Abu Shakra, noted that this increase was due to the rise of oil prices globally and the drop of the Lebanese currency against the dollar.

The price of a loaf of bread, supported by subsidies on wheat imports, has increased by about 50 percent due to the increase in wheat prices worldwide.



Pedersen Says ‘Extremely Critical’ to Avoid Syria Being Dragged into War in Region

UN special envoy for Syria Geir Pedersen meets with Syrian Foreign Minister Bassam Sabbagh in Damascus on Sunday. (Syrian Foreign Ministry)
UN special envoy for Syria Geir Pedersen meets with Syrian Foreign Minister Bassam Sabbagh in Damascus on Sunday. (Syrian Foreign Ministry)
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Pedersen Says ‘Extremely Critical’ to Avoid Syria Being Dragged into War in Region

UN special envoy for Syria Geir Pedersen meets with Syrian Foreign Minister Bassam Sabbagh in Damascus on Sunday. (Syrian Foreign Ministry)
UN special envoy for Syria Geir Pedersen meets with Syrian Foreign Minister Bassam Sabbagh in Damascus on Sunday. (Syrian Foreign Ministry)

The UN special envoy for Syria said on Sunday that it was “extremely critical” to end the fighting in Lebanon and Gaza to avoid the country being pulled into a regional war.

“We need now to make sure that we have immediately a ceasefire in Gaza, that we have a ceasefire in Lebanon, and that we avoid Syria being dragged even further into the conflict,” said Geir Pedersen ahead of a meeting with Syrian Foreign Minister Bassam Sabbagh in Damascus.

The Syrian Foreign Ministry has not released any details about the Pedersen-Sabbagh meeting. It only issued a brief statement in which it announced the meeting.

Local sources said Pedersen's second visit to Damascus this year is aimed at exploring the possibility of resuming the Constitutional Committee meetings aimed at resolving the Syrian crisis.

The meetings have been stalled since the eighth round on February 22, 2022, due to a dispute over the venue of the reconvening of the Constitutional Committee. Russia, which is not satisfied with Switzerland's joining Western sanctions against Moscow because of the Ukraine war, refuses to hold it in Geneva.

“Pedersen is holding talks with Syrian officials in Damascus, where he arrived last Wednesday, about the possibility of resuming the Constitutional Committee meetings,” reported Syria’s Al-Watan newspaper.

Earlier this month, Russian presidential envoy for Syria Alexander Lavrentyev told TASS: “As you know, only one venue - Geneva - is still unacceptable for the Russian side. As for all others, we are ready to work there.”

He added: “Probably, there is an open option with Baghdad, which, regrettably, was rejected by the Syrian opposition. It refused from this venue because Baghdad is supporting Damascus. They don’t think that Iraq is a neutral venue.”

The Russian diplomat stressed that the committee’s work should be resumed as soon as possible, but, in his words, it takes a lot of effort to find a venue that would be acceptable for both Damascus and the Syrian opposition.

Israel has been conducting airstrikes in Syria against government forces, Iranian troops and Hezbollah targets since the eruption of the crisis there in 2011. Strikes have increased following the Israeli war on Hezbollah in neighboring Lebanon.

On Sunday, the Syrian Observatory for Human Rights said the death toll of the Israeli airstrikes on Palmyra city on November 20 continues to increase with many people suffering from severe injuries.

The Syrian Observatory for Human Rights documented the death of three Syrians and two non-Syrian members of Iranian-backed militias, bringing the number of fatalities to 105.