Food and fuel prices rocket as Lebanese pound hits record low

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Updated 15 March 2023
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Food and fuel prices rocket as Lebanese pound hits record low

  • Currency trading at 100,000 to the US dollar
  • Banks close doors and go back on strike

BEIRUT: Food and fuel prices in Lebanon soared on Tuesday as the country’s currency plunged in value to a record low.

Officially pegged at 15,000 to the US dollar, the pound was trading at 100,000 on unofficial exchange markets — compared with 41,000 as recently as January, and 1,500 before the economic meltdown began in 2019.
Banks, which have imposed draconian withdrawal restrictions — essentially locking depositors out of their life savings — were closed on Tuesday after resuming a strike.
Lebanese resorted to black humor, complaining about having to weigh their money rather than  count it, and needing shopping bags to carry banknotes to the currency exchange. They blame the country’s political elite for causing the collapse and doing nothing to address it. Lebanon has had no president and a caretaker government since last year, mired in squabbling between rival factions.
“The platforms that manipulate the black market exchange rate have turned into a tool of blackmail and settling scores between the central bank governor, his opponents, the banks, and the judiciary,” onefinancial analyst said:

“Meanwhile, citizens and depositors pay the price. Nothing is stopping the exchange rate from reaching 150,000 pounds to the dollar during Ramadan, or even 200,000 after Easter and Eid.”

Abu Abbas, 75, who owns a small jewellery stall on Beirut’s busy Hamra Street, said he was barely making ends meet. “The lira has become completely worthless,” he said. “I used to buy medicine for my wife for 40,000 pounds, now it costs 900,000.”

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Mohammad Al-Rayes, 65, another shopkeeper in Beirut, said: “Ruling politicians... robbed the country and stole depositors’ money. They should leave and bring new leaders. Very tough times are coming.”

MP Ghassan Skaf said: “Before, we used to attract investments and tourists. Today we’re attracting money launderers, and we do not see any official intention to stop the collapse.”

The International Monetary Fund agreed in April last year to provide Lebanon with $3 billion in loans spread over four years, conditional on a package of sweeping reforms. But officials have failed to enact the changes demanded by international creditors in return for unlocking the emergency loans.
Meanwhile central bank governor Riad Salameh is being investigated at home and abroad for the suspected embezzlement of hundreds of millions of dollars. A Lebanese judge has asked Salameh to appear before visiting European investigators on Wednesday as part of a multinational probe into his personal wealth.
Lebanon is facing the economic meltdown largely leaderless, as the divided parliament has failed to elect a new president for months — in a country already governed by a caretaker Cabinet with limited powers.
Repeated sessions convened to elect a successor to Michel Aoun, whose term ended in October last year, have all failed to reach agreement on a consensus candidate.
The pound’s steady downfall reflects a “total loss of confidence in the policy makers of the country,” said Saeb El-Zein, a Lebanese former banker who worked with international lenders.
“You need political leadership to have economic leadership — and we don’t have political leadership.”
 


Gaza’s living conditions worsen as strong winds and hypothermia kill 5

Updated 14 January 2026
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Gaza’s living conditions worsen as strong winds and hypothermia kill 5

  • Hundreds of tents and makeshift shelters were blown away or heavily damaged, the UN humanitarian office reported

DEIR AL-BALAH, Gaza Strip: Strong winter winds collapsed walls onto flimsy tents for Palestinians displaced by war in Gaza, killing at least four people, hospital authorities said Tuesday.
Dangerous living conditions persist in Gaza after more than two years of devastating Israeli bombardment and aid shortfalls. A ceasefire has been in effect since Oct. 10. But aid groups say that Palestinians broadly lack the shelter necessary to withstand frequent winter storms.
The dead include two women, a girl and a man, according to Shifa Hospital, Gaza City’s largest, which received the bodies.
The Gaza Health Ministry said Tuesday a 1-year-old boy died of hypothermia overnight, while the spokesman for the UN’s children agency said over 100 children and teenagers have been killed by “military means” since the ceasefire began.
Meanwhile, Israel’s military said it exchanged fire Tuesday with six people spotted near its troops deployed in southern Gaza, killing at least two of them in western Rafah.
Family mourns relatives killed by wall collapse
Three members of the same family — 72-year-old Mohamed Hamouda, his 15-year-old granddaughter and his daughter-in-law — were killed when an 8-meter (26-foot) high wall collapsed onto their tent in a coastal area along the Mediterranean shore of Gaza City, Shifa Hospital said. At least five others were injured.
Their relatives on Tuesday began removing the rubble that had buried their loved ones and rebuilding the tent shelters for survivors.
“The world has allowed us to witness death in all its forms,” Bassel Hamouda said after the funeral. “It’s true the bombing may have temporarily stopped, but we have witnessed every conceivable cause of death in the world in the Gaza Strip.”
A second woman was killed when a wall fell on her tent in the western part of the city, Shifa Hospital said.
Hundreds of tents and makeshift shelters were blown away or heavily damaged, the UN humanitarian office reported.
The UN and its humanitarian partners were distributing tents, tarps, blankets and clothes as well as nutrition and hygiene items across Gaza, said the UN Office for the Coordination of Humanitarian Affairs.
The majority of Palestinians live in makeshift tents since their homes were reduced to rubble during the war. When storms strike the territory, Palestinian rescue workers warn people against seeking shelter inside damaged buildings for fears of collapse. Aid groups say not enough shelter materials are entering Gaza during the truce.
In the central town of Zawaida, Associated Press footage showed inundated tents Tuesday morning, with people trying to rebuild their shelters.
Yasmin Shalha, a displaced woman from the northern town of Beit Lahiya, stood against winds that lifted the tarps of tents around her as she stitched hers back together with needle and thread. She said it had fallen on top of her family the night before, as they slept.
“The winds were very, very strong. The tent collapsed over us,” the mother of five told AP. “As you can see, our situation is dire.”
On the shore in southern Gaza, tents were swept into the Mediterranean. Families pulled what was left from the sea, while some built sand barriers to hold back rising water.
“The sea took our mattresses, our tents, our food and everything we owned,” Shaban Abu Ishaq said, as he dragged part of his tent out of the sea in the Muwasi area of Khan Younis.
Mohamed Al-Sawalha, a 72-year-old man from the northern refugee camp of Jabaliya, said the conditions most Palestinians in Gaza endure are barely livable.
“It doesn’t work neither in summer nor in winter,” he said of the tent. “We left behind houses and buildings (with) doors that could be opened and closed. Now we live in a tent. Even sheep don’t live like we do.”
Residents aren’t able to return to their homes in Israeli-controlled areas of the Gaza Strip.
Child death toll in Gaza rises
Gaza’s Health Ministry said the 1-year-old in the central town of Deir Al-Balah was the seventh fatality due to the cold conditions since winter started. Others included a baby just seven days old and a 4-year-old girl, whose deaths were announced Monday.
The ministry, part of the Hamas-run government, says more than 440 people were killed by Israeli fire and their bodies brought to hospitals since the ceasefire went into effect. The ministry maintains detailed casualty records that are seen as generally reliable by UN agencies and independent experts.
UNICEF spokesman James Elder said Tuesday at least 100 children under the age of 18 — 60 boys and 40 girls — have been killed since the truce began due to military operations, including drone strikes, airstrikes, tank shelling and use of live ammunition. Those figures, he said, reflect incidents where enough details have been compiled to warrant recording, but the total toll is expected to be higher. He said hundreds of children have been wounded.
While “bombings and shootings have slowed” during the ceasefire, they have not stopped, Elder told reporters at a UN briefing in Geneva by video from Gaza City. “So what the world now calls calm would be considered a crisis anywhere else,” he said.
Gaza’s population of more than 2 million people has been struggling to keep the cold weather and storms at bay while facing shortages of humanitarian aid and a lack of more substantial temporary housing, which is badly needed during the winter months. It’s the third winter since the war between Israel and Hamas started on Oct. 7, 2023, when militants stormed into southern Israel and killed around 1,200 people and abducted 251 others into Gaza.
Gaza’s Health Ministry says more than 71,400 Palestinians have been killed in Israel’s retaliatory offensive.