-
Post Civil War
It was established a fixed exchange were the Lebanese pound was tied to the U.S dollar at a rate of 1,507.5 LBP per USD. Such policy then led to Lebanon’s economy to rely on foreign currency inflow through high interests to maintain the fixed exchange; so they could import everything the country needed as they didn’t produced much. -
Taif Agreement
The government was divided based on three sects that relied on sunnis, shias, and christians; all of them abused from their power as they neglected their responsibilities —leading to a high debt where money wasn’t used as supposed to. -
Shaking but not demolished yet
In 2017, Lebanon noticed a slow down in foreign inflow (meaning that there are less dollars to sustain the economy) as the prime minister resigned and foreign investors saw political instability and decided to stop depositing. With that, it deepened heavily the public debt from the ministries and inflation skyrocketed as the imports are more expensive, it increased overall prices. -
More Taxes and Protests
As the economy starts to shake, more taxes are imposed to make up for the growing deficit. These include state wage, pension bill, and internet calls. This lead to mass protests against corruption and falling economy; causing the current government to step down. -
COVID-19 pandemic
The pandemic started and such caused an entire closure of the economic part of the country. This measure provoked to the already unstable economy, to get worst as there is less economic activity and its people are struggling to keep up with it. -
Port of Beirut Explosion
It was an explosion of a large amount of ammonium nitrate in the port of the capital city of Lebanon. The effects it made was of 218 deaths, 7,000 injures, 300,000 new homeless people, and the damage in property of an estimated of US $15 billion. -
Shortages
Shortages on basic necessities start to occur and affect the overall population: gas scarcity, 700% increase of food prices, 77% of households don’t have enough food for a day, and 71% of Lebanese don’t secured access to water.