Currency plunge revives protests in Lebanon

ANGER AS EXCHANGE RATE HITS 6,000 POUNDS PER DOLLAR ON BLACK MARKET

Government pledges to inject dollars after a night of unrest on Thursday

Lebanon’s government yesterday pledged to inject dollars into the market, after a night of angry protests on Thursday, triggered by the currency plumbing new black market lows and the worst recession in decades.

Lebanese media reported that the exchange rate had touched 6,000 pounds per dollar on the black market yester, compared to the official peg of 1,507 in place since 1997.

An economic downturn since last autumn has seen widespread layoffs and pay cuts that mean 45 per cent of the population is now in poverty.

Anger against banks has risen in recent months, after they banned all transfers abroad and gradually restricted dollar withdrawals, forcing those in need to buy the greenback at unattractive rates on the black market.

After a crisis meeting, President Michel Aoun announced that the central bank will from Monday begin to execute measures including “feeding dollars into the market” to bolster the currency, which is trading on the black market at a 70 per cent discount to the official rate.

Parliament Speaker Nabih Berri, who attended the meeting with the president alongside Prime Minister Hassan Diab, said the government’s measures aimed to bring the exchange rate to stronger than 4,000 pounds to the dollar.

Protesters took to the streets after sundown on Thursday, setting tyres on fire and blocking roads, including in the

capital Beirut. Demonstrators rallied against a government that has been unable to arrest the economic decline, as well as against the governor of the central bank, Riad Salame.

“Several currents taking part in the protests want to topple the central bank governor, Lebanese American University professor Imad Salamey said..

Hilal Khashan, a professor at the American University of Beirut, said citizens had recently returned to the streets because “the middle class has been obliterated. But I don’t think the government will collapse”.

Lebanon has recorded 1,422 Covid-19 cases and 31 deaths.

AFP A protester holding the Lebanese flag runs as protesters block Jounieh Tripoli highway with tyres set aflame during a demonstration in Jal Al Dib, north-east of the capital Beirut, on Thursday.

Reuters Lebanese soldiers open a road yesterday that was blocked by demonstrators during a protest along a highway in Antelias.