BEIRUT: Banks have frozen account holders’ funds due to the deteriorating economic situation in Lebanon, after which citizens are conducting business transactions in cash.
In view of this situation, people are forced to keep huge amounts of cash in their homes instead of banks, the business community says that it is also very difficult to deposit taxes.
Lebanon’s current economic situation is seen as the worst financial crisis since the civil war that lasted from 1975 to 1990, and due to this financial crisis, Lebanon’s currency has been continuously depreciating.
Cash transactions are now on the rise in Lebanon, where three years of economic turmoil have left the country’s financial sector in shambles.
At money exchange shops, people queue up to buy US dollars with huge bags full of their battered local currency.
Banks have frozen billions of dollars in accounts of their account holders and their basic services have also been suspended.
People here now only work in cash for business transactions, with the local currency in circulation increasing 12-fold between September 2019 and November 2022, according to banking documents.
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Most restaurants and coffee shops put up apologetic notices stating that pay in cash and credit cards are not accepted.
Citizens use mobile apps to check the value of the Lebanese currency The pound has lost nearly 97 percent of its value since 2019.