Share:Lebanon’s foreign reserves have reached a “red line”, the country’s central bank governor warned on Saturday. On Wednesday, the central bank halted fuel subsidies that have drained the country’s foreign reserves. A foreign currency shortage and devaluation of the currency have caused the central bank's dollar reserves to dwindle from an average of $38 billion at the end of 2019 to its current average of $16 billion. Immediately after Salameh announced the lifting of fuel subsidies, hundreds of Lebanese took to the streets to express their anger against the decision, blocking several main roads. Observers say lifting fuel subsidies would raise the prices of other goods and services that depend on fuel to generate electricity for production such as factories and private bakeries.

Source: The Nation August 14, 2021 13:07 UTC