BEIRUT: The Lebanese pound fell against the US dollar Monday, trading at around LL7,600 after rallying toward the end of last week.

Black market exchangers were selling the dollar for LL7,800 and buying it at LL7,400, whilst the official buy and sell rates set by the Banque Du Liban for licensed exchangers remained at LL3,900 and LL3,850 respectively.

The pound had rallied from a low of around LL9,800 per dollar to LL7,350 Saturday. Officials attributed this gain in value to the Economy Ministry and BDLs recent subsidizing of the import of around 300 goods at a rate of LL3,900 to the dollar.

Economy Minister Raoul Nehme told The Daily Star that this subsidy should reduce the demand for the dollar on the black market significantly.

He said the program will cover around $6 billion to $7 billion of Lebanons $11 billion of imports this year, and that it should cause prices of imported goods to fall by around 30 percent.

Officials have also said the reopening of Lebanons only international airport on July 1 eased pressure on the dollar, with travelers potentially bringing several million dollars into the country each day.

Lebanons talks with the International Monetary Fund for a longer-term solution to the country's financial collapse are currently on hold.

The talks over a requested $10 billion bailout package from the Washington-based lender have been marred by internal disagreements between banking sector interest groups and the Lebanese government over the scale of BDLs losses and liabilities. More than 50 percent of banking sector assets are held at the Central Bank.

The government and IMF say that BDLs losses stand at around $50 billion, out of gross banking sector losses of $69 billion (at LL3,500 to the dollar).

Parliaments Finance and Budget Committee, meanwhile, puts that figure much lower by converting some of BDLs losses at the old pegged rate of LL1,500 to the dollar.

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