### In an effort to alleviate the country's severe economic woes, Lebanon has significantly lowered the value of its currency by ninety percent.


      <blockquote className="twitter-tweet"><p lang="en" dir="ltr">BREAKING: Lebanon will devalue its local fiat currency by 90% overnight.<br /><br />🇱🇧 needs <a href="https://twitter.com/hashtag/Bitcoin?src=hash&ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://t.co/WVrC02fTMC">pic.twitter.com/WVrC02fTMC</a></p>— Bitcoin Magazine (@BitcoinMagazine) <a href="https://twitter.com/BitcoinMagazine/status/1620481175100993536?ref_src=twsrc%5Etfw">January 31, 2023</a></blockquote>


A central bank may decide to devalue its own currency for a number of reasons:

Boost exports: Devaluing the currency makes exports cheaper for foreign buyers, thus increasing demand for domestic goods and boosting economic growth.
Combat inflation: Devaluation can help combat inflation by reducing the cost of imports, which can decrease domestic prices.

Address imbalance: Devaluation can help address trade imbalances by making exports more competitive and reducing the cost of imports.


However, central banks typically approach devaluation as a last resort and weigh the potential benefits against the potential risks.


The sudden 90% decline in the value of the Lebanese Pound will make life considerably difficult for the country's residents and will negatively affect their purchasing power. Fiat currencies are only backed by the government's promise that they have monetary worth, and right now we are witnessing it being stripped away from them.


The International Monetary Fund (IMF) can provide financial assistance to countries facing economic difficulties, including currency devaluation. However, this assistance typically comes with conditions attached, such as fiscal austerity measures and structural reforms, which can be politically controversial and difficult to implement.


In the case of Lebanon, the IMF has already provided several rounds of financial assistance and has been working with the government on implementing reforms aimed at stabilizing the economy and addressing the root causes of its financial crisis. However, the implementation of these reforms has been slow, and the country continues to face significant economic and political challenges, including high debt levels, a large trade deficit, and a complex political environment.


Bitcoin and other cryptocurrencies may offer an alternative to devaluing currencies due to their restricted supply, usability as a means of exchange, and network participants' trust in the technology and its capacity to safely transmit value. Bitcoin is underpinned by faith in its technology, a powerful network of nodes, and its ability to durably store value.

Central Bank Governor Riad Salameh announced that Lebanon will implement a new official currency rate of 15,000 pounds per US dollar on February 1, devaluing its local currency, the Lebanese Pound, by 90%.

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Fri Feb 03 2023 Lebanon to Devalue Its Currency By 90% – Bitcoin Can Protect Citizens Against This

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Fri Feb 03 2023

Lebanon to Devalue Its Currency By 90% – Bitcoin Can Protect Citizens Against This