Furious Protesters in Lebanon have set fire to the central bank in Tripoli concerning the country’s deepening economic crises as the currency collapses.
On June 11 Joyce Karam of The National tweeted that the Lebanese pound (LBP) is trading for more than 5,000 per $1 in spite of the country’s official peg of 1,507 per dollar.
This is a 20% depreciation since April and over 230% since the peg was respected in January.
Massive unemployment, corruption among all in political class in country. Lebanon pound bleeding by the day. It’s now > 5000 against dollar (used to be 1500 in Jan.) Hard to afford the basics. People have had enough and it’s showing in streets tonight — Joyce Karam (@Joyce_Karam) June 11, 2020
Reportedly, an increasing number of protestors are also embracing Bitcoin (BTC) as a means of bypassing Lebanon’s failing monetary system.
On June 12, Reuters reported that Lebanon’s central bank will begin injecting funds into its currency market in a bid to stem the rapid depreciation while escalating tensions and local unrest.
Some currency dealers have already responded to the central bank’s move, lowering prices down to roughly 4,500 pounds per dollar.
Meanwhile, government officials have also pledged to take action intended to reduce its value by to roughly 3,000 pounds per $1.
Protesters set ablaze a branch of the Central Bank, vandalised several private banks and clashed with security forces in several areas. https://t.co/iWlduYGnxF — Al Jazeera News (@AJENews) June 12, 2020
However, recent attempts by politicians to quell the country’s deepening economic crisis have been largely unsuccessful, with protestors having erupted into multiple demonstrations targeting banks with rocks and fire in recent months while Lebanese officials racked up record debts.
Meanwhile, an increasing number of Lebanese citizens are turning to Bitcoin and other cryptocurrencies amid the crisis.
Nikkei Asian Review reported that among the country’s protesters digital assets are
“being embraced as an alternative to dollar assets”