The Lebanese pound hit a new low on Tuesday, more than a week after the country went to the polls to elect a new parliament. The inconclusive vote for a divided parliament appears to have added more stress on the already serious economic crisis in Lebanon. It was the first election held in the country since the start of the crisis, called one of the worst economic crises in history.
The economic crisis has been exacerbated by the coronavirus pandemic as well as the massive damage caused by the explosion in the Beirut Port explosion in 2020.
The exchange rate of the Lebanese pound declined to 34,000 against the US dollar, down from the previously record low of 30,000 set less than a week ago, The Associated Press reported. The pound was set at 1,500 pounds against the dollar since the year 2000 until the crisis erupted in October 2019.
The International Monetary Fund has demanded that the Lebanese government approve an economic recovery plan before it intervenes further to help the country’s citizens through the crisis. Approval of a plan seems unlikely with the deep divisions among the parties elected to the new parliament.