To survive the terrible economic crisis, the Lebanese sell their gold
“We are all beggars”, graffiti in the streets of Beirut.
AP - Hussein Malla
Text by: Paul Khalifeh Follow
2 mins
Hit for two and a half years by the worst economic crisis in their history, the Lebanese are struggling to meet their basic needs.
The minimum wage, which was the equivalent of $450, has fallen to $25.
The Lebanese pound lost more than 90% of its value, leading to triple-digit inflation and rising prices.
The bankrupt state no longer provides the most basic social and health services.
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From our correspondent in Beirut,
The Lebanese middle class has been wiped out and 80% of the population lives below the poverty line.
Wages have become derisory and purchasing power has collapsed.
One of the manifestations of the crisis was the blocking by banks of customers' savings.
In the first year of the crisis, in 2020, the Lebanese tried to add value to their savings by “selling” their bank deposits.
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To read also: Port of Beirut: the disaster that adds to the economic sinking
At first, they recovered all or part of their savings by bank checks, since the banks no longer provided liquidity or very little.
Secondly, they sold these checks at a loss on the parallel market.
For example, a check for 1,000 euros was sold for 800 euros in cash.
Over the months, the value of bank checks has fallen to reach in
cash
, only 15% of the amount.
Today, bank checks no longer have any value, because no one accepts them anymore.
Some of this money was hoarded.
But it is difficult to know the exact amount.
Experts put forward figures ranging from 5 to 7 billion dollars.
In order to enhance their money and face difficult times, the Lebanese have built up a heritage by buying land and real estate.
And many bought gold, considered a safe haven.
Since the last quarter of 2021, and due to the worsening of the crisis, the Lebanese have been forced to sell their gold to finance their daily expenses and pay their bills, especially those related to transport and private generators that provide electricity. .
►
To read also: In Lebanon, already scarce electricity has become a luxury
This phenomenon has increased over the past four months, according to the president of the jewelery workers' unions, Boghos Kordian.
The middle class, or what's left of it, has almost exhausted its hard currency reserves.
She has no other alternative but to part with her gold and her jewelry.
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Lebanon
Economic crisis
finance
Poverty