In recent years, Lebanon’s economy has been on a turbulent journey, in which the triple crisis affects its banking sector, economy and currency.
Israel only intensified the challenges with the recent war of the country, and Lebanon jumped with destruction and uncertainty.
To understand the current financial landscape, it is important to look at important events in the last decade.
‘WhatsApp Tax’ protest, 2019
Although the 2019 protest was initially indicated by the proposed tax on WhatsApp call, the basic reasons for the government’s failure policies, misconduct, corruption, and consequently serious economic inequality were deeply deepened.
The people’s faith in the government was diminishing in the consciousness, in 2016 due to its controversial financial policies and the failed “financial engineering” of the Central Bank – complex exchange and providing liquidity in the banking system.
Continuous budget deficit and public sector salary – hike in large salary rent in 2018 – further reliable trust.
As a result, the October 2019 protests were promoted due to financial difficulties and the country’s financial fragility was revealed.
https://www.youtube.com/watch?v=nkevcfqBook
On March 7, the Prime Minister Hasan Diab’s government made a mistake on its sovereign loan, as the COVID -1 (partner’s disease) all across the country (or partner), as the global supply chain was disrupted and increasing the insecurity of Lebanon.
(Disease of the disease) all over the country (or continental) all weakening of healthcare (or continental) has created a serious shortage of hospital beds and essential drugs.
Relying on tourism and sending money, Lebanon became especially sensitive to global economic downturn.
Beerut port blasts, 2020
In August 2020, one of the most powerful atomic explosions in history was destroyed.
In addition to the widespread destruction and losing life in the capital, the explosion has reduced the trust of the people in the government due to deep corruption and neglect.
This is strictly discouraged by foreign investment due to instability in the previous uncertain circumstances.
In 2020 the Lebanese Pound went to the freefall, which increased inflation and reduced the power of people’s purchase.
Subsequently, in the 5th, Russia attacked Ukraine, extending the global fuel and food supply chains affecting countries around the world.
In Lebanon, he already intensified intense pressure on people in the household, which was pushing to maintain basic living because the government struggled more and more – and fell short.
Sally Hafiz: ‘Wonder Woman’ demands her money
The banking sector fell deeply in the turmoil, starting in the throes, and in the third quarter of that year, banks began to strictly restrict access to people’s deposits.
Then in September 2022, Sally Hafiz took the replica gun and hold Berurate Bank to access her own savings. She immediately became a symbol of the suffering of many Lebanese, and they began to call her “Wonder Woman”.
The crisis of this cyclone created a perfect storm, which causes a teaching to the edge of the lebonon collapse.
Many families were forced to sell foreign valuable goods, while relying on remotence abroad became more intense. Yet this lifeline was inadequate for many.
Due to this depression, skilled professionals, migrants – stimulated the growth of Lebanese – the departure of “boat people”, trying to make a dangerous maritime journey became a symbol of the country’s disappointment.
In the third quarter of 2 of the government arranged double exchange rates – official rates and free market rates – and some items including fuel and medicine.
This led to the development of black markets for these goods and increased in a wide range of widespread queues and extensive people’s anger by 2021.
Thus, at the end of the 1st, the resignation of President Mitchell Auon and the government of Prime Minister Najib Mikati’s government, debt default, partner disease, port explosion, devaluation of currency and global prices.
A brightness of hope broken
In 2023, the government stopped printing the Lira notes, which helped to stabilize the exchange rate. In parallel, pricing controls were picked up in the previous year, shortage and black markets.
https://www.youtube.com/watch?v=dzawb6xch0e
However, this hope was short -lived because on October October October October, 223, Hazbullah engaged Israel to Israel on October October after the events in Gaza. After several months of trade attacks on the border, Israel attacked the country full-level on September 224, and it was destroyed by the end of the year.
The World Bank destroyed the estimated destruction of $ 44 billion, while the financial loss, including lost productivity and trade disruption, was an additional $ 5.1 billion.
Combined, they represent 40 percent of the total domestic product (GDP) of Lebanon.
This conflict disrupted the trade and obstructed foreign investment, increased existing challenges – destroyed infrastructure obstructed traffic and logistics and seriously affected the businesses.
Hazballah unplugging
Hizbullah had played a major role in the Lebanese Society for decades, providing financial and social support to its support base in the southern suburbs of Beerut, south and northern Becka Valley.
But its role was significantly reduced by war and its contribution to the financial system effectively “unplugged”, which is likely to have a negative impact on those who depend on its support.
https://www.youtube.com/watch?v=QX0CBPRPL0W
Although the entire financial consequences are not yet clear, this can lead to further social and economic instability, especially on Hazbula’s support base – now in areas that are deprived of Hizbullah support.
Hope for the future
Lebanon president Joseph Auon and Prime Minister Nawaf Salam have a new government, and the new government has expressed hope for the renovated political will to implement difficult reforms while recaptinging into popular legal legality.
One of the possible ways to explore the new government will be to improve banking, increase trade and foreign investment and increase its attraction as a destination for businesses.
However, for at least a decade, Lebanon has suffered immense challenges caused by the deep rooted problems.
Whatever it is, whether they will be able to implement economic reforms, maintain political stability, and navigate the complications of regional geographical political landscape.
Finally, the success of these efforts will directly affect the Lebanese people, especially the most insecure, in the context where poverty prices have increased tremendously since 2019.
Failure to distribute can increase daily struggle for a decent life, more citizens can be pushed to frustrated measures, which reduce social fabric in the country, including increasing migration and brain drain.