Lebanese Lira Hits Unprecedented Low at Over 24,000 to the Dollar

The Lebanese currency fell to a new low against the dollar on Thursday amid a state of paralysis in the government as the financial collapse in the country worsens. Several currency exchangers in Beirut reported that the lira reached around 24,200 to the dollar, dipping below the previous all-time low of approximately 24,000 recorded in July. The currency has now lost more than 93% of its value since the summer of 2019, when it began to detach from the fixed exchange rate of 1,500 lira per dollar that it had been pegged to since 1997. Lebanon is enduring an economic collapse described by the World Bank as one of the worst recessions in modern history. The crisis largely stems from decades of corruption and mismanagement by the political elite. Lebanon formed a new government in September, headed by veteran politician Najib Mikati, which aimed to negotiate an International Monetary Fund program seen as crucial for releasing international aid to halt the crisis. However, the government has not convened for over 40 days, a hiatus that began with an effort by Hezbollah and its Iranian-backed allies to remove the judge investigating the Beirut port explosion in August 2020, which killed more than 215 people and caused billions of dollars in damage.