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Currency Peg’s Implosion Takes Down Lebanon’s Economy

  • Lebanese are changing their lifestyle to adapt to new reality
  • Lebanon expects an economic contraction of over 12% this year
Capital Controls Seen on the Cards for Lebanon as Crisis Deepens
Photographer: Hasan Shaaban/Bloomberg
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At a small cafe in the south Lebanese village of Ain Ebel, customers once indulged in drinks and lingered for hours puffing on water pipes filled with aromatic tobacco. Now, most go for a quick shot of espresso in a paper cup.

“It’s the only thing that’s still 2,000 pounds,” said Ibrahim Sader, the 32-year-old owner. “Everything else is now more expensive.”