Lebanese liquidity crisis

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The Lebanese liquidity crisis is an ongoing financial crisis affecting Lebanon, that became fully apparent in August 2019, and was further exacerbated by the COVID-19 pandemic in Lebanon (which began in February 2020), the 2020 Beirut port explosion and the Russian invasion of Ukraine. The country experienced liquidity shortages in the years prior to 2019 but the full extent of the fragility of the economy was concealed through financial engineering by the governor of the central bank. Lebanon's crisis was worsened by sanctions targeting Syria's former government and Iran-backed Hezbollah, which intensified under Donald Trump. The currency was devalued by over 98% between January 2023 and March 2024, with an annual inflation rate of 221.3% in 2023. Public services have collapsed; without using a private generator, households can expect only an hour or so of power a day. Shortages of drinking water have contributed to disease outbreaks, including the first cholera cases in decades. Parents...

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