Lebanese Peg That’s Held Up for Over Two Decades Is Under Siege - Bloomberg

Lebanese Peg That’s Held Up for Over Two Decades Is Under Siege - Bloomberg:

Lebanon’s slow-churning currency crunch is fast engulfing Bashar Boubess’s business.

The miller pays for wheat imports in dollars but bakeries buy his flour in Lebanese pounds. For weeks now, the bank has refused to exchange those pound earnings back into the hard currency he needs to replenish supplies. His wheat stocks have dropped 30%.

Boubess has turned to money changers to keep his business alive, but it’s expensive: they demand more pounds for every dollar than the increasingly unrealistic official rate.