Small supermarkets closed their doors on Tuesday and shoppers hoarded food after the Lebanese pound lost half of its value in only a week.
The pound is officially pegged at 1,507.5 to the dollar but has fallen sharply in the past 18 months, trading at 15,000 to the dollar on Tuesday on the parallel market.
The rapid drop in the currency led some Lebanese to panic-buy.
Hassan Hamade, 80, filled his trolley with coffee, rice and other necessities he is buying in bulk at a Spinneys supermarket in Beirut.
"Every hour we have a different rate and different prices. It's catastrophic," he told The National.
“The state is absent and every supermarket has a different pricing.”
From high-end supermarket chain Spinneys to the local co-operative catering to working-class people 15 minutes away, stores were packed with customers buying kitchen essentials, such as coffee and cooking oil, in bulk.
The purchasing power of millions of Lebanese and residents has crashed since the country was hit by a severe economic crisis in late 2019, triggered by a shortage of foreign currencies and decades of high-level corruption.
Prices of non-subsidised goods have rocketed, with rapid inflation leaving shopkeepers unable to keep track of the new exchange rate and shoppers fearing shortages.
Every hour we have a different rate and different prices. It's catastrophic
Lebanese citizens and residents rely on goods imported in dollars for basic necessities such as wheat, fuel and even legumes.
Mr Hamade owns a small business importing white goods in dollars. He said his children living abroad helped him weather the crisis as work became scarce.
“A few weeks ago I wrote a receipt for a customer at a rate of 8,000 pounds to the dollar for equipment bought in dollars. When they pay me now it will be effectively at half price,” he said.
Pricing has become a major hurdle for business owners as the exchange rate has fluctuated daily in the past week. Many supermarkets and caterers closed their doors while they waited for the rate to stabilise.
Vigilantes on motorbikes toured the capital urging shops to close down instead of increasing prices on Tuesday to protest against inflation, which has reduced the value of wages while prices soar.
Samer Kays, owner of Kays supermarket in the busy district of Mar Elias in Beirut, says he refuses to close but has no choice but to increase prices.
Only a couple of customers shopped at his two-storey supermarket, which has become too pricey for many in the middle-class neighbourhood.
“My colleagues are closing their shops because they had priced their products at 8,000 pounds to the dollar and now we’re headed towards a rate of 16,000, so they will lose money,” he said.
A pack of imported cigarettes that was worth 12,000 pounds last week now costs 16,000, he told The National, and said he stopped sticking new prices on his products.
“You would need two employees to keep changing the stickers all day,” he said, with exasperation in his voice.
His father opened the shop 70 years ago during Beirut’s golden era. Mr Kays took on the family business after years spent abroad and hoped to earn a decent living running the shop, but the crisis dashed his dreams.
“All I can do now is guard this place, like a concierge,” he said, his voice quivering. “I can barely cover my spending.”
Some petrol stations have also begun closing their doors in the past few days while others limited their opening hours because of shortages, two employees of different stations told The National.
Caretaker Energy Minister Raymond Ghajar said last week that Lebanon may have “no electricity at all” by the end of March should the cash-strapped government fail to secure funds needed to buy fuel.
Hundreds of people have been blocking roads throughout Lebanon since early March to protest against deteriorating living conditions but Lebanese officials have yet to enact any policies to halt the fall of the pounds.
The country has been run by a caretaker government since Prime Minister Hassan Diab resigned in August after a deadly blast struck Beirut’s port, killing more than 200 people and destroying half of the capital.
Politicians bickered about their share of the coming Cabinet for the past eight months, crushing hope of enacting the economic reforms needed to unblock millions in debt relief and loans granted by donor countries and international lenders.
Shopper Hoda Sraj said peaceful protests are Lebanon’s only hope for change.
“Our politicians have not lifted a finger while their people go hungry,” the homemaker, 60, said as she filled her trolley with coffee at Spinneys.
Her husband and children, who work abroad, are her only lifeline in the country, in which foreign currencies are now scarce.
Despite their financial support, she says she is afraid for the future as the economic crisis is set to deepen.
“I might as well buy my groceries today because tomorrow the pound may tumble to 20,000 or even 50,000,” she said.
“No one knows how far this could go.”
Jawan
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UAE currency: the story behind the money in your pockets
Mohammed bin Zayed Majlis
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
The biog
Place of birth: Kalba
Family: Mother of eight children and has 10 grandchildren
Favourite traditional dish: Al Harees, a slow cooked porridge-like dish made from boiled cracked or coarsely ground wheat mixed with meat or chicken
Favourite book: My early life by Sheikh Dr Sultan bin Muhammad Al Qasimi, the Ruler of Sharjah
Favourite quote: By Sheikh Zayed, the UAE's Founding Father, “Those who have no past will have no present or future.”
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
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
if you go
Getting there
Etihad (Etihad.com), Emirates (emirates.com) and Air France (www.airfrance.com) fly to Paris’ Charles de Gaulle Airport, from Abu Dhabi and Dubai respectively. Return flights cost from around Dh3,785. It takes about 40 minutes to get from Paris to Compiègne by train, with return tickets costing €19. The Glade of the Armistice is 6.6km east of the railway station.
Staying there
On a handsome, tree-lined street near the Chateau’s park, La Parenthèse du Rond Royal (laparenthesedurondroyal.com) offers spacious b&b accommodation with thoughtful design touches. Lots of natural woods, old fashioned travelling trunks as decoration and multi-nozzle showers are part of the look, while there are free bikes for those who want to cycle to the glade. Prices start at €120 a night.
More information: musee-armistice-14-18.fr ; compiegne-tourisme.fr; uk.france.fr
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
Profile of RentSher
Started: October 2015 in India, November 2016 in UAE
Founders: Harsh Dhand; Vaibhav and Purvashi Doshi
Based: Bangalore, India and Dubai, UAE
Sector: Online rental marketplace
Size: 40 employees
Investment: $2 million
