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InvestmentsLebanese carry 'worthless' stacks of cash after currency crash By Reuters

Lebanese carry ‘worthless’ stacks of cash after currency crash By Reuters


© Reuters. A person holds up Lebanese pound banknotes in Beirut, Lebanon October 27, 2021. Picture taken October 27, 2021. REUTERS/Issam Abdallah


BEIRUT (Reuters) – Restaurant proprietor Antoine Haddad has been in enterprise for over 35 years however says he’s operating out of hope as Lebanon struggles with one of the deepest monetary crises of fashionable occasions.

The Lebanese pound misplaced round 90% of its worth up to now two years, propelling three quarters of the inhabitants into poverty.

For Haddad, the distinction between this and different crises that Lebanon has skilled, together with the 1975-1990 civil battle, is that it looks like there isn’t a finish in sight.

“Previously, you had hope that: ‘tomorrow the war will end, we do this and that and go back to where we were’, but this time there is no hope,” he stated.

“They (those in power) promised us we would have plenty of money in our hands, and we indeed have a lot of it to play with,” he stated sarcastically referring to the rising stacks of banknotes wanted for even fundamental purchases after the currency drop.

Haddad, whose small restaurant has been in enterprise since 1984, stated he can solely purchase 10% of the olive oil he used to purchase with the identical cash.

The authorities, dealing with an election in March because it tries to safe an IMF restoration plan, has tripled transport allowance for workers to alleviate some of the ache however most salaries, together with the minimal wage, haven’t been adjusted.

Pub-owner Moussa Yaakoub can also be shocked by the quantity of cash he must run his enterprise.

“I have never before held in my hands this amount of money,” he stated as he counted some 10 million kilos, value $6,600 on the pre-crisis charge however now lower than $500 on the market charge.

That a lot cash used to cowl a pub’s operation for months, however now solely pays a pair of payments, he stated.

Grocery retailer proprietor Roni Bou Rached has modified the way in which he shops cash in his cash drawer now that smaller notes are used much less, and cash are nearly non-existent.

“I am hesitant how much to carry in my pocket when I leave. I sometimes carry 1 million or 1.5 million … but I mean, they are worthless,” he stated.

A single restaurant invoice now might quantity to sums greater than some staff’ earnings.

“God help those who do not have an income or are not able to work around things,” Ali Jaber, a non-public sector worker, stated.

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