Lebanon's financial collapse began in 2019, when dollar inflows dried up and banks froze withdrawals. Lebanon defaulted on its Eurobonds in March 2020, and the…
Lebanon pegged its pound at 1,507.5 to the dollar. It held for 22 years, funded by a constant flow of dollars from abroad.
Dollar inflows dried up. Protests began on 17 October, and banks restricted withdrawals and transfers abroad without any law.
Lebanon skipped a $1.2 billion Eurobond, putting about $30 billion of bonds into default, its first ever.
About 2,750 tonnes of ammonium nitrate exploded, killing more than 200 people. The government resigned six days later.
Inflation averaged 171.2% in 2022 and hit 270% in April 2023. An IMF deal reached in April 2022 never took effect.
About 140,000 per dollar in March 2023. From mid-2023 it stabilised near 89,500, more than 98% below the peg.
Banking secrecy was eased and a bank resolution law passed. In December the cabinet approved a gap law repaying deposits up to $100,000 over four years.
War returned in March 2026; the World Bank sees a 6.4% contraction. The central bank hopes to agree the gap law with the IMF by year-end.
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