{"id":21280,"date":"2023-02-21T23:00:21","date_gmt":"2023-02-22T07:00:21","guid":{"rendered":"https:\/\/coinnetworknews.com\/banks-torched-after-pound-taps-new-low-versus-the-us-dollar-economics-bitcoin-news\/"},"modified":"2023-02-21T23:00:21","modified_gmt":"2023-02-22T07:00:21","slug":"banks-torched-after-pound-taps-new-low-versus-the-us-dollar-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/banks-torched-after-pound-taps-new-low-versus-the-us-dollar-economics-bitcoin-news\/","title":{"rendered":"Banks Torched After Pound Taps New Low Versus the US Dollar \u2013 Economics Bitcoin News"},"content":{"rendered":"
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The Lebanese pound\u2019s fall to its lowest ever versus the U.S. dollar, 80,000 to 1, has piled more misery on residents whose local currency-denominated savings have been decimated by inflation. The ongoing strike by banks demanding the passage of capital control legislation has compounded matters for residents.<\/strong><\/p>\n

Lebanese Pound Devaluation<\/h2>\n

According to several local media reports, Lebanon\u2019s currency recently plunged to a new all-time low of 80,000 per U.S. dollar on the unofficial foreign exchange market. The Lebanese pound\u2019s fall on the parallel market came less than a month after it was devalued<\/a> by more than 90% on the official market.<\/p>\n

Although the currency\u2019s devaluation from 1,507 to 15,000 per dollar was seen as monetary authorities\u2019 attempt to unify the pound\u2019s multiple exchange rates, some experts have argued that the new official exchange rate is pegged way below the rates where most trade takes place.<\/p>\n

The currency\u2019s latest plunge meanwhile has piled more misery<\/a> on Lebanese residents who have already seen the country\u2019s high inflation rate decimate their pound-denominated savings. As previously reported<\/a> by Bitcoin.com News, the country\u2019s residents have been unable to withdraw their savings after banks froze their accounts.<\/p>\n

Capital Control Reforms<\/h2>\n

To compound matters for residents, the country\u2019s banks recently went on strike<\/a> and are demanding the passage of capital control laws that restrict foreign and local currency withdrawals. The International Monetary Fund (IMF), which reached a bailout deal with the Lebanese government in April 2022, has reportedly asked for capital control reforms to be carried out before it releases funding.<\/p>\n

However, in response to the move by banks as well as the pound\u2019s latest plunge, Lebanese residents reportedly attacked the closed banking outlets. In one video<\/a> shared on social media, angry Lebanese protesters are seen attempting to set on fire the home of the president of the Association of Lebanese Banks.<\/p>\n

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Nigerian banks on \ud83d\udd25 and now in Lebanon also. Economic apartheid suppresses whole civilizations and when that is not enough the currency wars are used to tighten the noose. Humanity is rising up. The Revolution has begun. \u270a\ud83c\udffd https:\/\/t.co\/D9PlFAOArK<\/a><\/p>\n

\u2014 Ray Youssef (@raypaxful) February 17, 2023<\/a><\/p>\n<\/blockquote>\n

On Twitter, some users shared pictures and videos of burning bank buildings while crypto enthusiasts used the Lebanese banks\u2019 ability to block clients\u2019 access to funds to highlight the risks of using a digital currency issued by central banks.<\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Karim naamani \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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