NuclearVision wroteHonestly, this LBP withdrawal limit may be helpful, i am not saying it's rightful, but in current circumstances it may draw a limit to inflation or delay it at leaat.
Everyone have the right to spend their hard earned money, but people are realizing that their money is worthless paper losing vakue over time, they're trading it for goods, among goods are food and dollars which are rising in price due to increased demand.
Close the LBP sink, you may be able to control that.
Again, this is not rightful, but it may help us survive a few months more.
What you're talking about is correct, however, the banking and financial sector were being warned for years about the country credit limit losing its rating and going down to a CCC rating which they consider "junk" according to Moody's Investor Service.
https://www.mei.edu/publications/it-too-late-save-lebanon-financial-collapse
The problem like all problems in Lebanon was neglected as when things get worse, of course, no one cares as all the people in the political sector have their monies in banks abroad and so them following up on the matter does not give any benefit. The citizen is the only one who would suffer and thus no one cared enough to do anything about it.
Banks had no choice but to do the "haircut" and yet they knew no one would accept that especially in a time where revolution is taking place, and so they did it in stages to indirectly applying it by no one noticing.
This is why your LBP is limited and you are encouraged to get fresh dollars into their systems. This indirectly is stabilizing the inflation rate meanwhile people are starving to death especially those who weren't able to withdraw their money in the month of January due to the lockdown.
We have the economic issue, financial issue, COVID, and the explosion.
We are in a big hot mess!