The surge in demand for the Lebanese pound continues, prompting the Central Bank (BDL) to bolster its reserves by $120 million within a mere two-day span. With General Joseph Aoun's election as President of the Republic, the demand for the pound has surged, reaching even higher levels for the second consecutive day. In response, BDL injected the necessary liquidity to meet market demand for the national currency and stabilize the exchange rate at LBP 89,500 per dollar.
According to An-Nahar, BDL has bolstered its reserves by acquiring over $120 million in the past two days. Analysts anticipate that this trend will persist over the next two weeks, particularly if a Prime Minister is appointed and a new government is formed.
Despite growing speculation that the dollar exchange rate could plummet to record lows, sources caution that such a significant drop remains unlikely in the short term. Achieving this would require a set of critical conditions to be met, including political and security stability, implementing administrative, financial and banking reforms, and restoring balance in public finances and the balance of payments.
Following the election of General Joseph Aoun as President of the Republic, Lebanese Eurobonds have experienced a notable increase in value, nearly tripling since September. This surge is attributed in part to the perceived decline in Hezbollah's influence, often regarded as a major impediment to resolving Lebanon's political crisis. Nevertheless, despite their daily gains, these bonds remain among the cheapest government bonds globally, underscoring the profound challenges facing the country’s economy.
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