Lebanese pound dips after wild rally

Exchange dealers said they were buying the greenback for LL18,900 and selling it for LL19,000

  
Image used for illustrative purpose A man counts U.S. dollar banknotes next to Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020.

Image used for illustrative purpose A man counts U.S. dollar banknotes next to Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020.

REUTERS/Mohamed Azakir

BEIRUT: The Lebanese pound fell on the black market Tuesday, trading at LL18,950 against the dollar, after rallying in previous days on the designation of a new prime minister.

Exchange dealers said they were buying the greenback for LL18,900 and selling it for LL19,000, compared to LL17,900-LL18,000 at close Monday after a wild trading day. The dollar had sunk to as low as LL16,500 Monday before partially recovering early evening.

The local currency hit a record low of LL23,500 against the dollar 10 days ago.

President Michel Aoun Monday designated former Prime Minister Najib Mikati to form a new Cabinet charged with implementing reforms, restarting negotiations with the International Monetary Fund over a rescue package and supervising next year's parliamentary elections.

The local currency has lost more than 90 percent of its value since late 2019 as the country plunged into its worst financial and economic crisis in modern times, pushing more than half the population below the poverty line.

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