Here we go as predicted: the Lebanese central bank attempts to prevent a "panic mode" scramble on the part of the public to remove all deposits, and the recently imposed (unofficial) regulations geared toward staving off capital flight are predictably failing fast, per Reuters:“Clients with guns have entered banks and security guards have been afraid to speak to them as when people are in a state like this you don’t know how people will act.” People queue outside a bank in Sidon, Lebanon the prior Friday, Nov. 1 via Reuters/Daily Sabah
Lebanon's private banks reopened a week ago on Friday following a two-week closure due to massive anti-government protests which created gridlock across the country's main cities, including closure of other public institutions such as schools.
The Nov. 1 bank re-openings followed Prime Minister Saad Hariri's resignation last week, which the some one million demonstrators flooding Lebanon's streets since early last month have touted as a 'success'; however, the economy remains on the brink of collapse, given growing fears of a major run on the banks.
Since reopening banks have blocked most transfers abroad and maintained tight controls over hard-currency withdrawals, policies which have led to reports of threats against bank staff. Some of these heated encounters are being filmed and posted to the internet. Likely the situation is about to become explosive into next week after the banks close for the weekend.
"This is our money!... We can't get our money - you have money in the banks and you're not giving it to the people! You're stealing from us!" (our translation) the man in the below video shouts inside his bank.Situation in Lebanese Banks is extremely dangerous, shortage to lack of US dollars for depositors. https://t.co/MrCicTg4yF — Bassem (@BBassem7) November 8, 2019
Chaotic scenes played out from the moment the banks reopened, as Lebanon's Daily Sabah described:Large q...