{"id":5194,"date":"2022-04-28T19:57:13","date_gmt":"2022-04-28T19:57:13","guid":{"rendered":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/?p=5194"},"modified":"2022-04-28T19:57:13","modified_gmt":"2022-04-28T19:57:13","slug":"parliament-pushes-for-capital-controls-law-as-lebanese-protest","status":"publish","type":"post","link":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/2022\/04\/28\/parliament-pushes-for-capital-controls-law-as-lebanese-protest\/","title":{"rendered":"Parliament pushes for capital controls law as Lebanese protest"},"content":{"rendered":"\n

Link to Article: “Parliament pushes for capital controls law as Lebanese protest<\/a>“<\/p>\n\n\n\n

Three years ago, Lebanon imposed regulations on withdrawing US dollars from bank accounts, and now, the state is attempting to pass a capital controls law, worrying citizens about the already-spiraling economy. According to the report, the Lebanese pound has lost 90% of its value since the financial crash in 2019, and 75% of the population has fallen below the poverty line. The economic state has led to inflated gas prices, power cuts, food inflation,, and insecurity, threatening the daily life of many.<\/p>\n\n\n\n

Protests have erupted over the newly proposed capital control plans, with many citizens losing faith and trust in their own government. Lebanese lawmakers and state officials are shareholders of the commercial banks in Lebanon, which causes people to question their intentions. The estimated losses for Lebanon’s banking sector are predicted to be around $69 billion. Although the people are mad, officials have stated that the capital control law is not what it seems to be and that people have mistaken it for something else. According to the government, the law “will not define the fate of the deposits.\u201d The law has come after years of pressure from foreign nations and the IMF, which has created a \u201cbailout\u201d program if the nation agrees to the capital controls. <\/p>\n\n\n\n

Lebanon’s 2019 financial crash led to the nation’s decision to set withdrawal limits on foreign currency, giving the state more control over money flow. Because citizens can only withdraw foreign currency in the form of domestic currency with an inflation rate, they have lost great amounts of money, sending many into a financial crisis. However, these inflation rates end up benefiting the banks instead. In reality, to help Lebanon\u2019s economy come back to stability, the capital controls could help protect the remaining foreign currency in Lebanon\u2019s market. <\/p>\n\n\n\n

The capital controls by themselves are not likely to make a huge difference. It is important that Lebanon is able to implement an effective economic recovery plan, and hopefully, it helps its citizens recover from their losses as well. The capital control law itself won\u2019t be a fix to the whole situation.\u00a0<\/p>\n\n\n\n

In connection to the class, the IMF (International Monetary Fund), is an IGO that has had a huge impact on this process. The organization is made up of around 190 countries and works to achieve economic stability and growth in its member countries. In Lebanon\u2019s case, the IMF has proposed an economic bailout program if the state agrees to impose the capital control laws, although many citizens believe that this will not be a good solution at this point, which has created high disapproval within the country.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Link to Article: “Parliament pushes for capital controls law as Lebanese protest“ Three years ago, Lebanon imposed regulations on withdrawing US dollars from bank accounts, and now, the state is attempting to pass a capital controls law, worrying citizens about the already-spiraling economy. According to the report, the Lebanese pound has lost 90% of its value since the financial crash… Read more »<\/a><\/p>\n","protected":false},"author":162,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5194","post","type-post","status-publish","format-standard","hentry","category-article"],"_links":{"self":[{"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/posts\/5194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/users\/162"}],"replies":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/comments?post=5194"}],"version-history":[{"count":2,"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/posts\/5194\/revisions"}],"predecessor-version":[{"id":5198,"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/posts\/5194\/revisions\/5198"}],"wp:attachment":[{"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/media?parent=5194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/categories?post=5194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/middleeastandnorthafricablog\/wp-json\/wp\/v2\/tags?post=5194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}