Pound drops after three day upward trend

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Pound drops after three day upward trend

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(Reuters)-22/02/2020

The Lebanese pound fell to L.L.2,440 to the dollar Friday, reversing a three day upward trend.

Exchange shops Friday morning were selling the dollar for L.L.2,465 and buying it for L.L.2,415.

The previous day’s rate stood at L.L.2,415, with exchange shops selling and buying the dollar for around L.L.2,440 and L.L.2,390, respectively.

Lebanon’s Cabinet and financial authorities were in consultations Thursday with a delegation from the International Monetary Fund on the best way to default on the $1.2 billion in Eurobond due March 9.

Lebanese banks, however, are keen to persuade the government to pay the Eurobond, under the pretext of protecting customers’ deposits.

The official exchange rate of the Lebanese pound is L.L1,505.7 to the dollar but a liquidity crisis following years of declining capital inflows has seen the rate soar in recent months.