Lebanon’s crippled economy hobbles into new year
Lebanon kicked off the new year with the value of the pound reaching a new all-time low of 30,000 to $1 on the parallel market. A month earlier, it was trading at 23,000 pounds to $1.
The latest downward spiral brings the value of the country’s monthly minimum wage to $22.50. But experts note, these are just the latest signs of chronic illness in an economy that’s been sick for years.
Lebanon’s dual currency system ultimately failed because the country has long suffered from financial mismanagement and corruption, say experts. The economy came to rely almost entirely on tourism, banking, and remittances from the diaspora to generate revenue and bring in foreign currency.