The Lebanese Government Raises the Price of "Subsidized Bread"

  • Beirut, Lebanon
  • 1 July 2020

The Lebanese government raised the price of the partially subsidized bread package which weighs 900 grams to 2,000 pounds from its previous level before the October crisis (1,500 pounds).

The Lebanese pound, which is officially pegged at 1,500 per dollar, has lost more than 80 percent of its value since October 2019 and is now being traded on the black market at about 9000 to the dollar after sharp falls in the past few days.

Lebanon is witnessing a severe financial crisis that caused the closure of companies and a jump in prices and unemployment, and this crisis is considered the worst threat to Lebanon's stability since the civil war that rocked it between 1975 and 1990.

Lebanon maintains the official peg of the currency at 1507.5, but dollars at this level are available exclusively for imports of fuel, medicine, and wheat.

The bread crisis sparked more anti-government protests, during which protesters blocked major highways across the country.

In a related context, the Lebanese army leadership decided to stop using meat in meals that are provided to the military while they are on duty, due to an unprecedented rise in its price.

Source (Al-Sharq Al-Awsat newspaper, Edited)

Get an annual subscription in the quarterly Arab Economic bulletin