Small businesses in Lebanon are increasingly leaning on the US dollar to cope with the worst financial crisis the nation has ever witnessed in its modern history. With the Lebanese pound losing 95% of its value since late 2019, many restaurants, retail outlets, and other small businesses now demand to be paid in dollars. The federal government recently allowed grocery stores to start doing the same. As the Lebanese pound relentlessly loses value, selling products in local currency inflicts a loss on local businesses. Though this “dollarization” will likely ease inflation, it may push more people into poverty and deepen the current economic crisis.
