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Monday, October 18, 2021

Hyperinflation: Beirut local shows what you can buy with monthly wage amid Lebanon's economic crisis

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Hyperinflation: Beirut local shows what you can buy with monthly wage amid Lebanon's economic crisis
Hyperinflation: Beirut local shows what you can buy with monthly wage amid Lebanon's economic crisis

A man living in Beirut shows how much a diminishing wage can buy during Lebanon's economic crisis and hyperinflation.

A man living in Beirut shows how much a diminishing wage can buy during Lebanon's economic crisis and hyperinflation.

Ali Chehade made a video showing how much an average resident has to pay for their groceries and bills.

"In this video, I try to demonstrate some of the daily struggles the Lebanese people are experiencing on a daily basis," Chehade told Newsflare.

He notes that less than 20 months ago a US dollar was worth 1,500 Lebanese lira.

In June 2021 it is approaching 16,000 lira.

"So the exchange rate on google is 1,500 lira to 1 US Dollar, which is the theoretical official exchange rate which no one has access to.

The country is not changing the 'official rate' to avoid a lot of internal issues," Chehade told Newsflare.

He added: "There are already multiple exchange rates, some of which are backed by the government for specific sectors.

That being said, the only realistic exchange rate is the black market rate, which is naturally the highest." Chehade visits a local store and purchases several everyday groceries which amount to 180,000 lira, 26 percent of the minimum wage - 675,000 lira.

He said: "Grocery prices are irrationally expensive, electricity is out most of the day, long lines on gas stations due to fuel shortage, pharmacies are missing most of the drugs, and banks have no liquidity to give depositors their money.

Those are just some of the many struggles the people in Lebanon are living on a daily basis." The Beirut resident also notes how the store is in darkness as there is no electricity for most of the day.

After paying 560,000 for a generator bill, Chehade goes to fill his car up with fuel.

The country has been suffering from gas shortages in 2021 leading to queues at gas stations lasting hours.

At the station, Chehade visited they were only allowing each motorist to purchase 10 liters of gas.

Chehade then searches for five different types of medication at a local pharmacy but none were available.

The resident's final destination is an ATM where he explains the banks are unable to give people their foreign currency savings.

Chehade also states that people living in the country are unable to perform international transactions over the internet.

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