Riots in Lebanon over economy

Lebanese troops were deployed in northern city of Tripoli on June 27, 2021 to take positions across major state institutions following a night of protests and riots against worsening living conditions in the country.

Ground situation

Riots have left several protesters and 10 soldiers injured. Protests were reported throughout Lebanon after its 20-month economic crisis worsened. World Bank described this crisis as one of the worst crisis in 150 years. Economic crisis is coupled with political deadlock which has left Lebanon without any government since August 2020.

Lebanon Economic crisis

Lebanese Economic or liquidity crisis is an ongoing financial crisis in Lebanon. It was started in August 2019. Crisis further exacerbated by spread of COVID-19 pandemic in Lebanon and 2020 Beirut port explosion. As a result, Lebanon has been suffering severe shortages of vital products like fuel, medicine and medical products.

Background

Lebanese pound has been pegged to U.S. dollar at a rate of 1,507.5 LBP per USD in 1997. In August 2019, black market exchange rate reached 1,600 LBP per USD while it increased to 3,000 LBP per USD in April 2020 and 15200 LBP per USD in June 2021. USD black market exchange rate is fluctuating continuously due to devaluation of Lebanese pound. On June 27, Lebanon’s currency reached to 18,000 LBP against U.S. dollar. Pound has lost 90% of its value since this crisis started.

About Lebanon

Lebanon is a country in Western Asia. It is bordered by Syria in north & east, Israel in south and Cyprus in west across the Mediterranean Sea. It is location at crossroads of Mediterranean Basin and Arabian hinterland as a result of which, the country has a rich history and cultural identity of religious diversity. It I one of the smallest countries in Asia. Arabic is the official language.

Month: Current Affairs - June, 2021