Effect of Currency Devaluation on Performance of Small and Medium Firms in Beirut, Lebanon

Currency devaluation refers to a deliberate and official reduction in the value of country's currency relation other currencies. It can occur through various mechanisms, such as adjusting interest rates, intervening foreign exchange markets, or implementing monetary policies aimed at reducing supply domestic currency. create financial challenges for SMEs. Financial institutions may be more cautious extending credit due increased risks associated with rate fluctuations. Devaluation reduces collateral assets, making it harder SMEs secure financing.  The research used descriptive design. The target population was 200 small medium firms Beirut, Lebanon.  study did sampling 150 participants that were chosen from Lebanon. Questionnaires utilized gather data. In conclusion, Lebanese has presented numerous these businesses, impacting their competitiveness, profitability, sustainability. is crucial understand direct indirect impacts devaluation. Increased import costs, inflationary pressures, reduced purchasing power have placed significant strain on By recognizing challenges, develop effective management strategies explore hedging mechanisms mitigate risk. recommended should consider developing export-oriented strategies, including identifying new export conducting market research, adapting products services meet international demand. capitalizing opportunities, diversify revenue streams reduce vulnerability economic caused by Keywords: Devaluation, Performance, Small Medium Firms, Lebanon