Banks set on fire after the pound hits a new low against the US dollar – Bitcoin News

The Lebanese pound’s slide to its lowest level against the US dollar, 80,000 to 1, has added to the misery of residents whose local currency-denominated savings have been decimated by inflation. The ongoing strike by banks demanding passage of capital control legislation has made things difficult for residents.

Devaluation of the Lebanese pound

According to various local media reports, Lebanon’s currency recently plunged to a new all-time low of 80,000 to the US dollar on the unofficial foreign exchange market. The fall of the Lebanese pound in the parallel market occurred less than a month after its devalued in more than 90% in the official market.

Although the devaluation of the currency from 1,507 to 15,000 to the dollar was seen as an attempt by the monetary authorities to unify the multiple exchange rates of the pound, some experts have argued that the new official exchange rate is well below the rates where most of the trade is done.

Meanwhile, the latest coin drop has built up more misery about Lebanese residents who have already seen the country’s high inflation rate decimate their pound-denominated savings. As previously reported by Bitcoin.com News, residents of the country have been unable to withdraw their savings after banks froze their accounts.

Capital control reforms

To complicate matters for residents, the country’s banks recently They went on strike and they are demanding the passage of capital control laws that restrict withdrawals of local and foreign currency. The International Monetary Fund (IMF), which reached a bailout deal with the Lebanese government in April 2022, reportedly called for capital control reforms to take place before releasing funds.

However, in response to the movement of the banks, as well as the latest drop in the pound, Lebanese residents attacked closed banking establishments. In one video shared on social media, angry Lebanese protesters are seen trying to burn down the house of the president of the Lebanese Banks Association.

Nigerian banks in 🔥 and now also in Lebanon. Economic apartheid suppresses entire civilizations and when that is not enough, currency wars are used to tighten the noose. Humanity is rising up. The Revolution has begun. ✊🏽 https://t.co/D9PlFAOArK

— Ray Youssef (@raypaxful) February 17, 2023

On Twitter, some users shared photos and videos of burning bank buildings, while cryptocurrency enthusiasts used the ability of Lebanese banks to block customer access to funds to highlight the risks of using a digital currency issued by the central banks.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer in Zimbabwe. He has written extensively about the economic problems of some African countries and how digital currencies can provide an escape route for Africans.