Lebanon is facing an unprecedented financial crisis, and for many Lebanese citizens, accessing their own money has become a battle. Across the nation, a disturbing trend is emerging: bank heists. However, these are not your typical robberies. Frustrated depositors are storming banks, not to steal, but to reclaim their own savings, trapped by draconian banking restrictions. Far from being condemned, these individuals are often hailed as folk heroes, reflecting the deep-seated anger and desperation over the state of the Money Of Lebanon.
Unpacking the Lebanese Economic Meltdown
Since 2019, Lebanon has been spiraling into a severe economic crisis. The numbers paint a stark picture:
- Poverty on the Rise: A staggering 80% of the population, approximately three million people, now live below the poverty line, according to UN estimates.
- Savings Evaporating: The Lebanese pound, the national money of Lebanon, has lost over 90% of its value against the US dollar on the black market. This drastic devaluation has decimated savings and wiped out the middle class.
- Bank Lockouts: Lebanese banks have imposed strict capital controls, severely limiting withdrawals, especially of foreign currency. Savers find themselves locked out of their own accounts, unable to access their money of Lebanon in any meaningful way.
- De Facto “Haircuts”: Even when withdrawals are permitted, banks apply exchange rates far below market value. As Al Jazeera’s Zeina Khodr explains, attempting to withdraw $700 might only yield $200 in actual value, effectively imposing a significant “haircut” on depositors’ funds. This means people are losing a substantial portion of their already dwindling money of Lebanon savings upon withdrawal.
The Growing Wave of “Bank Heists”
Driven to desperation, Lebanese citizens are taking drastic action. The number of incidents where individuals forcibly attempt to retrieve their money of Lebanon from banks is escalating:
- January Incident: The first widely reported case involved a man in eastern Lebanon holding people hostage to demand access to his foreign currency savings. He reportedly received a portion of his funds before surrendering.
- August Beirut Hostage: An armed man held bank employees and customers hostage in Beirut, demanding $200,000 for his father’s medical treatment. He was met with public support outside the bank, highlighting the widespread sympathy for such actions.
- Recent Spate of Actions: In a single day, multiple incidents occurred, including an armed man in Aley attempting to access his savings and the widely publicized case of Sali Hafiz.
- Sali Hafiz’s Story: Sali Hafiz, along with activists, stormed a BLOM Bank branch in Beirut. Armed with what she later described as a toy gun, she sought to withdraw funds for her sister’s cancer treatment. Threatening to set the bank ablaze, she successfully retrieved $13,000 of her $20,000 deposit.
A Symptom of Systemic Failure
These “bank heists” are not isolated incidents of criminality; they are a desperate outcry against a failing system.
- Depositors’ Outcry: Sali Hafiz and others are part of a group called Depositors’ Outcry, founded by Alaa Khorchid. The group argues that these actions are born out of necessity, a last resort when all other avenues have been exhausted.
- Erosion of Trust: Khorchid points to the lack of government action, the absence of an economic recovery plan, and the depletion of national reserves. Citizens feel abandoned, forced to “take matters into their own hands” to access their own money of Lebanon.
Lebanon’s Economic Abyss: A Crisis of Global Significance
The scale of Lebanon’s economic crisis is immense, with dire consequences for the money of Lebanon and the nation’s future.
- Massive Financial Losses: Government estimates place losses in the financial sector between $68 billion and $69 billion.
- Global Warning: The World Bank warns that this crisis could rank among the three most severe economic collapses worldwide since the mid-19th century.
Seeking Solutions: A Long Road to Recovery
The international community has repeatedly called for Lebanon to undertake significant reforms to address the crisis and stabilize the money of Lebanon.
- International Pressure for Reform: Demands include ending corruption and wasteful spending, restructuring the energy sector, and conducting a forensic audit of the central bank.
- IMF Bailout Conditional on Reforms: Lebanon’s Minister of Economy and Trade, Amin Salam, acknowledges the need for an IMF bailout, but emphasizes that reforms are a prerequisite.
- Lack of Credible Action: Despite the urgency, successive Lebanese governments have failed to implement a credible economic reform plan, hindering access to much-needed international financial aid.
The “bank heists” in Lebanon are a stark manifestation of a deeper crisis – a crisis of governance, economic mismanagement, and the erosion of trust in the financial system. Until meaningful reforms are enacted, and citizens can regain access to their money of Lebanon, desperate measures are likely to continue, further destabilizing the nation and hindering any path to recovery.
