Illustrative photo of man counting Lebanese lira bills. (Credit: Joseph Eid/AFP)
BEIRUT – Since Sept. 23, the year-long cross-border firing between Hezbollah and Israel has taken an unprecedented turn. Israeli airstrikes have leveled villages in the south, the Bekaa and torn through Beirut’s southern suburbs, leaving over 2,000 dead and millions displaced. Yet, in the midst of the devastation, the Lebanese lira held firm despite deepening instabilities.Hovering around LL89,500-to-the-dollar, the lira has been stable for over a year now, after what seemed like an endless four-year cycle of fluctuations that accompanied Lebanon’s severe economic crisis. The escalating violence is, however, raising questions as to whether that stability can be eventually shaken.The silver lining of a fully dollarized economyIn times of uncertainty — or war — people usually rush to convert their money into currencies deemed “safer” or...
BEIRUT – Since Sept. 23, the year-long cross-border firing between Hezbollah and Israel has taken an unprecedented turn. Israeli airstrikes have leveled villages in the south, the Bekaa and torn through Beirut’s southern suburbs, leaving over 2,000 dead and millions displaced. Yet, in the midst of the devastation, the Lebanese lira held firm despite deepening instabilities.Hovering around LL89,500-to-the-dollar, the lira has been stable for over a year now, after what seemed like an endless four-year cycle of fluctuations that accompanied Lebanon’s severe economic crisis. The escalating violence is, however, raising questions as to whether that stability can be eventually shaken.The silver lining of a fully dollarized economyIn times of uncertainty — or war — people usually rush to convert their money into currencies deemed...