Left Menu
Development News Edition

UPDATE 1-Lebanese cbank targets stable pound, says bank deposits rose in 2018

Reuters | Updated: 16-01-2019 15:47 IST | Created: 16-01-2019 15:47 IST
UPDATE 1-Lebanese cbank targets stable pound, says bank deposits rose in 2018
Lebanon's central bank aims to keep the exchange rate of its pound currency stable in 2019, the bank's governor said on Wednesday.

Riad Salameh also said Lebanese bank deposits climbed by 3.5 percent in 2018.

The comments were his first in public since remarks by the finance minister last week about Lebanon's public debt triggered concerns that the debt might be restructured, leading to a sell-off in the country's dollar-denominated sovereign bonds.

The government issued a statement on Sunday saying it had "absolutely" no plans to restructure the debt, helping the bonds to recover.

The pound has been pegged against the dollar at its current level for more than two decades.

"For 2019, our goals will always be for the stability of the Lebanese pound exchange rate," Salameh said. "Our view of interest rates is stable."

He said the notable thing about the increase in deposits "was in the deposits in foreign currencies while the deposits in Lebanese pounds remained at the same level, raising dollarisation to 70 percent in the Lebanese markets."

The veteran central bank governor did not refer to last week's market turbulence in his comments to the Arab economic gathering in Beirut.

Lebanon's public debt is one of the biggest in the world compared to GDP at around 150 percent.

Salameh said Lebanon's economic growth in 2018 was around 1 percent to 1.5 percent according to central bank studies and compared this to growth of around 2 percent in the region.

"We could have done 2 percent if the government had been formed at the appropriate time," he said. Political deadlock is still blocking the formation of a new cabinet more than eight months after a national election.

Salameh said recent instructions to money transfer firms to pay in Lebanese pounds were related to compliance to combat money laundering "and not as some tried to frame it as either to prevent transfers or to support the Lebanese pound". (Reporting by Ellen Francis and Tom Perry; Editing by John Stonestreet)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION / BLOG / INTERVIEW

Public health care post-COVID 19 to go for revamping, not rebooting

Until now, the economies used to classify healthcare sector under social expenditure. However, the devastation caused by COVID 19 pandemic has upgraded public healthcare on topmost priority and core economic activity for controlling future ...

Coronavirus lockdowns to speed up long-pending revamping of supply chains

With millions of production lines impacted, business disruptions to some extent are unavoidable and the lessons learned from this turbulence will leave an everlasting impact on both global and local levels of supply chains....

COVID 19 to catalyze the redefinition of urban planning and sustainability

Until now the urban planning was focused on mitigation to natural disastrous, climate change, pollution, chronic illness and lifestyle diseases. However, the global pandemic of novel coronavirus is going to change the whole narrative of urb...

Ebola to COVID 19: Has Geopolitics prevailed over Professionalism in WHO

World Health Organization WHO is perceived as one of the most professional bodies of the United Nations. However, the role of WHO has come under question in handling outbreak two deadly diseases Ebola Viral Disease EVD and novel Coronaviru...

Videos

Latest News

Worldwide coronavirus toll passes 30,000, two thirds in Europe: AFP tally

More than 30,000 people have died worldwide in the coronavirus pandemic, two-thirds of them in Europe, according to an AFP tally at 1900 GMT on SaturdayIn total, 30,003 lives have been lost with 21,334 of those in Europe where Italy has the...

Civil rights leader, MLK aide Joseph Lowery dies at 98

The Rev. Joseph E. Lowery, a veteran civil rights leader who helped the Rev. Martin Luther King Jr. found the Southern Christian Leadership Conference and fought against racial discrimination, died Friday, a family statement said. He was 98...

Quake shakes eastern Indonesia amid fears of coronavirus

A strong inland and shallow earthquake hit late Saturday night causing people to panic in parts of Indonesias Sulawesi island and run to higher ground despite health officials asking for social distancing to slow the spread of coronavirus. ...

Soccer-Juventus players, coach Sarri agree pay cut due to coronavirus

Juventus players and coach Maurizio Sarri have reached an agreement over a wage reduction that will save the Italian champions 90 million euros in the 20192020 financial year, the Serie A club announced on Saturday.Sarri and the players hav...

Give Feedback