Lebanese pound keeps falling in absence of government

Black market exchangers were selling the dollar for around LL8,400 and buying it for LL8200

  
A woman counts Lebanese pound and U.S. dollar banknotes at a currency exchange shop in Beirut, Lebanon April 3, 2020. Image used for illustrative purpose.

A woman counts Lebanese pound and U.S. dollar banknotes at a currency exchange shop in Beirut, Lebanon April 3, 2020. Image used for illustrative purpose.

REUTERS/Mohamed Azakir

BEIRUT: The Lebanese pound fell further against the dollar Monday, trading at around LL8,300 on the black market, up from around LL8,225 a day earlier.

Black market exchangers were selling the dollar for around LL8,400 and buying it for LL8200.

Lebanon’s troubled economy continues to deteriorate further due to political instability and the absence of a new government contributing to its collapse.

Prime Minister-designate Mustapha Adib stepped down from his task to form a new government Saturday, pushing the country into more uncertainty as many feared the French initiative – seen as Lebanon's only way out of its crises – was over.

The Lebanese pound starting declining following Adib’s resignation.

However President Emmanuel Macron Sunday gave Lebanon’s ruling class another four to six weeks to implement his proposed road map to bring the country back from the verge of chaos.

During his news conference dedicated to the situation in Lebanon, Macron accused Lebanon's leaders of betrayal over their failure to form a new government.

Lebanon is back to square one more than a month after Prime Minister Hassan Diab resigned following the deadly Beirut Port blast in August.

With a caretaker government in place, the already frozen negotiations with the International Monetary Fund cannot be resumed until a new Cabinet is formed.

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