Bank deposits to be withdrawn at 3,850 LBP to the dollar

BEIRUT: The rate for dollar deposit withdrawals has been hiked to 3,850 LBP, up from 3,000 LBP to the dollar which was in effect since April.

The central bank is expected to amend circulars 148 and 151 to reflect the changes as Lebanon battle the worst fx liquidity crunch in its history.

The black market rate has been hovering near the 7,000 LBP to the dollar mark for the better part of a week with officials’ short-sighted measures failing to curb the rise.

The pound had been pegged at 1,500 to the dollar since 1997.

Highly indebted Lebanon is in the throes of financial and economic crises, made worse by restrictions imposed to combat the coronavirus in March. Political rivalries have also complicated negotiations with the International Monetary Fund, which the Lebanese government has asked last month for $10 billion in financial assistance.

-- With AP