A government plan for tackling Lebanon's financial crisis projects a 93% devaluation of the Lebanese pound and converts the bulk of hard currency deposits in the banking system to local currency, according to a blueprint seen by Reuters. Of $104 billion of hard currency deposits, the plan foresees returning just $25 billion to savers in U.S. dollars, with most of what's left converted to pounds at several exchange rates, including one that would wipe 75% off some deposits. The plan sets a 15-year timeframe for paying back all depositors.

Lebanon's currency has lost more than 15% of its value since the start of the year, piling further pressure on the population more than two years into a crisis that has plunged many into poverty and fuelled demonstrations, Reuters reported. Protesters took to the streets in several areas of the country on Monday night, burning tires and voicing anger at the dire economic situation amid political deadlock. Cars queued at fuel stations to fill up before another expected rise in prices.

Lebanon’s currency hit a new low Tuesday reaching 20 times its value on the black market since the economic meltdown began in late 2019 and likely throwing more people into poverty, the Associated Press reported. The pound was trading at 30,000 to 1 U.S. dollar on the black market as the economic crisis continues with no solution expected in the near future. The Lebanese currency was pegged at 1,500 pounds to the dollar for 22 years until decades of corruption and mismanagement led to the country’s worst economic crisis in its modern history starting in October 2019.

Lebanon's central bank said on Thursday it would sell U.S. dollars to commercial banks at the rate on its Sayrafa foreign exchange platform, but analysts said offering more hard currency would do little to steady the already crippled Lebanese pound, Reuters reported. Lebanon's economy has been in freefall since 2019, when a mountain of debt and political gridlock, drove the nation into its deepest crisis since the 1975-1990 civil war. The Lebanese pound, which was exchanged freely at 1,500 to the dollar before the crisis, has collapsed to around 25,000 on the unofficial market.

Saudi Arabia banned imports from Lebanon and, along with three other Gulf states, expelled its ambassador following remarks by an official about the war in Yemen, as long-simmering tensions over Iran’s influence in Lebanon spill over and threaten to damage its already disastrous economy, the Wall Street Journal reported.

The International Monetary Fund (IMF) and Lebanese authorities have started technical discussions to pull the country out of its crisis, a senior IMF official said, stressing the need to address the losses faced by the financial sector, Reuters reported. An IMF programme is widely seen as the only way Lebanon can unlock foreign financial help which it desperately needs to emerge from one of the world's sharpest economic depressions.

Lebanon’s new government held its first meeting Monday with a call by the president to resume talks with the International Monetary Fund to help kick-start its recovery from one of the world’s worst economic crises in more than a century, the Associated Press reported. The 24-member Cabinet’s most pressing mission over the coming weeks will be to help improve conditions in the country of 6 million, including a million Syrian refugees. More than half the population now lives in poverty amid extended power outages and severe shortages in fuel and medicine.

Lebanon’s new prime minister pledged Friday to gain control of one of the world’s worst economic meltdowns, saying lifting subsidies was a critical priority for the small country’s government formed after a year of political stalemate, the Associated Press reported. It is a momentous task facing the 24-minister Cabinet, which includes fresh faces who are prominent experts in their fields, but which still reflects Lebanon’s fractious politics. The country’s economic crisis, unfolding since 2019, has been described as one of the worst in the world in the last 150 years.

Lebanon’s government agreed yesterday to pay tens of thousands of poor families cash assistance in U.S. dollars from a World Bank loan as the country’s economic crisis deepens, the Associated Press reported. The decision comes as Lebanon is expected to end subsidies for fuel by the end of next month, a move that is expected to lead to sharp increases in prices of almost all products. Lebanon’s parliament approved in March a $246 million loan from the World Bank that would provide assistance for more than 160,000 families.

Lebanon’s caretaker prime minister warned Tuesday that the country is hurtling toward a “social explosion” and appealed on the international community for assistance to prevent the demise of the nation facing multiple crises, the Associated Press reported. Hassan Diab’s plea came as he spoke to diplomats in Lebanon, where politicians have failed to agree on forming a new government, nearly a year after Diab’s Cabinet resigned.