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Broke in Beirut: Currency Crisis Has Begun to Bite in Lebanon
(Economist-UK) Over the past few weeks, customers at Beirut banks have queued for hours only to learn that they cannot access their money. One was told that his branch had less than $2,000 in the vault. Lebanon's currency, the pound, has been pegged at 1,500 to the dollar since 1997. Receipts are printed in both currencies and shopkeepers make change with a mix of dollars and pounds. Many ATMs have stopped dispensing dollars. Banks have lowered withdrawal limits to $1,000 a day and banned dollar transactions after 5 p.m. and on weekends. Lebanon's public debt is more than 150% of GDP, among the highest in the world. Fitch, a ratings agency, recently downgraded Lebanon's debt to CCC, deep into junk territory. On October 1, Moody's put Lebanon's junk status under review for a possible downgrade.