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Q70 (CISF/2022) Economy › Economy Current Affairs

Which one among the following countries, which was in the news recently, has lost more than 90% of the value of its currency in two years ?

Explanation

Lebanon has been grappling with a severe economic crisis since late 2019, which the World Bank has described as one of the most severe global episodes since the mid-19th century. In February 2023, Lebanon officially devalued its currency, the Lebanese pound, by 90%, changing the official exchange rate from 1,507 to 15,000 pounds per US dollar. On the parallel (black) market, the currency had already lost more than 98% of its value over the preceding three years. While Turkey has faced significant currency depreciation and high inflation, its currency did not lose 90% of its value within a two-year window during this period. Algeria and Morocco have maintained relatively stable currencies compared to the extreme volatility seen in Lebanon.

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