A Lebanese activist displays fake banknotes called “Lollars”, in front of a mock ATM, during a stunt to denounce the high-level of corruption that has wrecked the country. AFP
A Lebanese activist displays fake banknotes called “Lollars”, in front of a mock ATM, during a stunt to denounce the high-level of corruption that has wrecked the country. AFP
A Lebanese activist displays fake banknotes called “Lollars”, in front of a mock ATM, during a stunt to denounce the high-level of corruption that has wrecked the country. AFP
A Lebanese activist displays fake banknotes called “Lollars”, in front of a mock ATM, during a stunt to denounce the high-level of corruption that has wrecked the country. AFP

Hyperinflation in Lebanon hovers at 206% in April


Massoud A Derhally
  • English
  • Arabic

Hyperinflation in Lebanon continued in April as the country emerges from parliamentary elections that require the future government to put in place various reforms approved by the outgoing Cabinet, in order to secure $3 billion from the International Monetary Fund that will help resuscitate its economy.

Inflation in the country, which faces its worst economic crisis since its independence in 1943, reached 206 per cent last month, compared to the same period a year earlier.

This is the 22nd consecutive triple-digit increase of the Central Administration of Statistics' Consumer Price Index since July 2020. The index increased 7.1 per cent from March 2022.

“The inability of the authorities to monitor and contain retail prices … the deterioration of the Lebanese pound's exchange rate on the parallel market and the gradual lifting of subsidies on hydrocarbons … have encouraged opportunistic wholesalers and retailers to raise the prices of consumer goods disproportionately,” Byblos Bank said in a note on Tuesday.

“In addition, the smuggling of subsidised imported goods has resulted in shortages … which contributed to the rise in prices. The emergence of an active black market for gasoline last summer has put upward pressure on prices and on inflation.”

Transportation costs increased 492 per cent in April 2022, compared to the same month last year, followed by the health segment, which surged 431 per cent. Water, electricity, gas and other fuels soared 409 per cent, while food and non-alcoholic beverages rose 375 per cent.

Though elevated, inflation is far from the peak of 741 per cent reached at the end of 1987 during the country's 1975-1990 civil war.

Lebanon's economy collapsed after it defaulted on about $31bn of eurobonds in March 2020, with its currency sinking more than 90 per cent against the dollar on the black market.

  • A baker holds up a seeded white loaf of bread at a bakery in Beirut, Lebanon, which faces a food crisis because of war in Europe. All photos: Bloomberg
    A baker holds up a seeded white loaf of bread at a bakery in Beirut, Lebanon, which faces a food crisis because of war in Europe. All photos: Bloomberg
  • A worker opens a sack of flour to prepare bread dough in Beirut. Lebanon's wheat importers are already rationing flour sales to counter panic buying.
    A worker opens a sack of flour to prepare bread dough in Beirut. Lebanon's wheat importers are already rationing flour sales to counter panic buying.
  • Lebanon, already suffering from years of financial crisis, has faced new problems since Russia invaded Ukraine in February.
    Lebanon, already suffering from years of financial crisis, has faced new problems since Russia invaded Ukraine in February.
  • Lebanon normally buys 96 per cent of its wheat from Russia and Ukraine.
    Lebanon normally buys 96 per cent of its wheat from Russia and Ukraine.
  • The war between two of the world's biggest wheat exporters has sparked fears of a food crisis in many Middle Eastern countries.
    The war between two of the world's biggest wheat exporters has sparked fears of a food crisis in many Middle Eastern countries.
  • Lebanese importers are struggling to get dollars from a subsidy programme to buy wheat from new suppliers.
    Lebanese importers are struggling to get dollars from a subsidy programme to buy wheat from new suppliers.
  • As countries try to secure new sources of wheat, cash-strapped Lebanon's small market of 6 million people could go without.
    As countries try to secure new sources of wheat, cash-strapped Lebanon's small market of 6 million people could go without.
  • Lebanon lacks grain storage after silos were destroyed in the 2020 Beirut Port blast.
    Lebanon lacks grain storage after silos were destroyed in the 2020 Beirut Port blast.
  • The country needs 50,000 tonnes of wheat to feed its people for a month.
    The country needs 50,000 tonnes of wheat to feed its people for a month.
  • Subsidies keep the price of bread in Lebanon artificially low.
    Subsidies keep the price of bread in Lebanon artificially low.
  • But a loaf now costs on average 10,000 Lebanese pounds, or $0.45, more than six times the price in 2019.
    But a loaf now costs on average 10,000 Lebanese pounds, or $0.45, more than six times the price in 2019.
  • Millers estimate that without subsidies, prices could more than double.
    Millers estimate that without subsidies, prices could more than double.
  • Analysts fear that could cause social unrest in a country where three quarters of the population now live in poverty.
    Analysts fear that could cause social unrest in a country where three quarters of the population now live in poverty.

Inflation has since surged while public debt, already a major overhang, continued to rise and reached $100bn, or about 212 per cent of gross domestic product, in 2021.

That ranks Lebanon as the country with the fourth highest debt-to-GDP ratio in the world, surpassed only by Japan, Sudan and Greece, according to the World Bank.

Lebanese authorities must enact a list of reforms before the IMF's board approves the four-year $3bn facility. Those measures include the government's approval of a bank restructuring strategy, reforming the bank secrecy law, and endorsing a medium-term fiscal and debt restructuring strategy.

Once the IMF programme is in place, Lebanon's government will need to make other changes that include a single exchange rate and capital controls, reforming state-owned enterprises, and strengthening governance and fiscal reforms.

The country's economy contracted about 58 per cent between 2019 and 2021, with the GDP plummeting to $21.8bn in 2021 from about $52bn in 2019, according to the World Bank. That is the largest contraction on a list of 193 countries.

JERSEY INFO

Red Jersey
General Classification: worn daily, starting from Stage 2, by the leader of the General Classification by time.
Green Jersey
Points Classification: worn daily, starting from Stage 2, by the fastest sprinter, who has obtained the best positions in each stage and intermediate sprints.
White Jersey
Young Rider Classification: worn daily, starting from Stage 2, by the best young rider born after January 1, 1995 in the overall classification by time (U25).
Black Jersey
Intermediate Sprint Classification: worn daily, starting from Stage 2, by the rider who has gained the most Intermediate Sprint Points.

The finalists

Player of the Century, 2001-2020: Cristiano Ronaldo (Juventus), Lionel Messi (Barcelona), Mohamed Salah (Liverpool), Ronaldinho

Coach of the Century, 2001-2020: Pep Guardiola (Manchester City), Jose Mourinho (Tottenham Hotspur), Zinedine Zidane (Real Madrid), Sir Alex Ferguson

Club of the Century, 2001-2020: Al Ahly (Egypt), Bayern Munich (Germany), Barcelona (Spain), Real Madrid (Spain)

Player of the Year: Cristiano Ronaldo, Lionel Messi, Robert Lewandowski (Bayern Munich)

Club of the Year: Bayern Munich, Liverpool, Real Madrid

Coach of the Year: Gian Piero Gasperini (Atalanta), Hans-Dieter Flick (Bayern Munich), Jurgen Klopp (Liverpool)

Agent of the Century, 2001-2020: Giovanni Branchini, Jorge Mendes, Mino Raiola

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

The specs

Price: From Dh180,000 (estimate)

Engine: 2.0-litre turbocharged and supercharged in-line four-cylinder

Transmission: Eight-speed automatic

Power: 320hp @ 5,700rpm

Torque: 400Nm @ 2,200rpm

Fuel economy, combined: 9.7L / 100km

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

Rainbow

Kesha

(Kemosabe)

World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

WHAT%20IS%20THE%20LICENSING%20PROCESS%20FOR%20VARA%3F
%3Cp%3EVara%20will%20cater%20to%20three%20categories%20of%20companies%20in%20Dubai%20(except%20the%20DIFC)%3A%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20A%3A%3C%2Fstrong%3E%20Minimum%20viable%20product%20(MVP)%20applicants%20that%20are%20currently%20in%20the%20process%20of%20securing%20an%20MVP%20licence%3A%20This%20is%20a%20three-stage%20process%20starting%20with%20%5B1%5D%20a%20provisional%20permit%2C%20graduating%20to%20%5B2%5D%20preparatory%20licence%20and%20concluding%20with%20%5B3%5D%20operational%20licence.%20Applicants%20that%20are%20already%20in%20the%20MVP%20process%20will%20be%20advised%20by%20Vara%20to%20either%20continue%20within%20the%20MVP%20framework%20or%20be%20transitioned%20to%20the%20full%20market%20product%20licensing%20process.%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20B%3A%3C%2Fstrong%3E%20Existing%20legacy%20virtual%20asset%20service%20providers%20prior%20to%20February%207%2C%202023%2C%20which%20are%20required%20to%20come%20under%20Vara%20supervision.%20All%20operating%20service%20proviers%20in%20Dubai%20(excluding%20the%20DIFC)%20fall%20under%20Vara%E2%80%99s%20supervision.%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20C%3A%3C%2Fstrong%3E%20New%20applicants%20seeking%20a%20Vara%20licence%20or%20existing%20applicants%20adding%20new%20activities.%20All%20applicants%20that%20do%20not%20fall%20under%20Category%20A%20or%20B%20can%20begin%20the%20application%20process%20through%20their%20current%20or%20prospective%20commercial%20licensor%20%E2%80%94%20the%20DET%20or%20Free%20Zone%20Authority%20%E2%80%94%20or%20directly%20through%20Vara%20in%20the%20instance%20that%20they%20have%20yet%20to%20determine%20the%20commercial%20operating%20zone%20in%20Dubai.%C2%A0%3C%2Fp%3E%0A
How%20to%20avoid%20getting%20scammed
%3Cul%3E%0A%3Cli%3ENever%20click%20on%20links%20provided%20via%20app%20or%20SMS%2C%20even%20if%20they%20seem%20to%20come%20from%20authorised%20senders%20at%20first%20glance%3C%2Fli%3E%0A%3Cli%3EAlways%20double-check%20the%20authenticity%20of%20websites%3C%2Fli%3E%0A%3Cli%3EEnable%20Two-Factor%20Authentication%20(2FA)%20for%20all%20your%20working%20and%20personal%20services%3C%2Fli%3E%0A%3Cli%3EOnly%20use%20official%20links%20published%20by%20the%20respective%20entity%3C%2Fli%3E%0A%3Cli%3EDouble-check%20the%20web%20addresses%20to%20reduce%20exposure%20to%20fake%20sites%20created%20with%20domain%20names%20containing%20spelling%20errors%3C%2Fli%3E%0A%3C%2Ful%3E%0A

SPECS

Toyota land Cruiser 2020 5.7L VXR

Engine: 5.7-litre V8

Transmission: eight-speed automatic

Power: 362hp

Torque: 530Nm

Price: Dh329,000 (base model 4.0L EXR Dh215,900)

Company%20profile
%3Cp%3EDate%20started%3A%20January%202022%3Cbr%3EFounders%3A%20Omar%20Abu%20Innab%2C%20Silvia%20Eldawi%2C%20Walid%20Shihabi%3Cbr%3EBased%3A%20Dubai%3Cbr%3ESector%3A%20PropTech%20%2F%20investment%3Cbr%3EEmployees%3A%2040%3Cbr%3EStage%3A%20Seed%3Cbr%3EInvestors%3A%20Multiple%3C%2Fp%3E%0A
It Was Just an Accident

Director: Jafar Panahi

Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr

Rating: 4/5

War and the virus
COMPANY PROFILE
Name: Mamo 

 Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua

 Based: Dubai, UAE

 Number of employees: 28

 Sector: Financial services

 Investment: $9.5m

 Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. 

 
THE SPECS

Engine: 6.75-litre twin-turbocharged V12 petrol engine 

Power: 420kW

Torque: 780Nm

Transmission: 8-speed automatic

Price: From Dh1,350,000

On sale: Available for preorder now

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

Match info

Liverpool 4
Salah (19'), Mane (45 2', 53'), Sturridge (87')

West Ham United 0

The biog

Birthday: February 22, 1956

Born: Madahha near Chittagong, Bangladesh

Arrived in UAE: 1978

Exercise: At least one hour a day on the Corniche, from 5.30-6am and 7pm to 8pm.

Favourite place in Abu Dhabi? “Everywhere. Wherever you go, you can relax.”

UAE's role in anti-extremism recognised

General John Allen, President of the Brookings Institution research group, commended the role the UAE has played in the fight against terrorism and violent extremism.

He told a Globsec debate of the UAE’s "hugely outsized" role in the fight against Isis.

"It’s trite these days to say that any country punches above its weight, but in every possible way the Emirates did, both militarily, and very importantly, the UAE was extraordinarily helpful on getting to the issue of violent extremism," he said.

He also noted the impact that Hedayah, among others in the UAE, has played in addressing violent extremism.

Updated: May 24, 2022, 1:47 PM