IMF: Lebanon’s Plan To Allow USD Withdrawals Risks Higher Inflation

SourceThe961
SectorEconomy
CountryLebanon

The decision by the Central Bank of Lebanon to allow depositors to withdraw U.S. dollars from their accounts on a monthly basis risks higher inflation, the International Monetary Fund (IMF) warned on Thursday. In light of the shortage of foreign currency in Lebanon and the persistent need to subsidize imports, it isn’t clear how the withdrawals enabled by the Banque du Liban (BDL) will be financed, IMF spokesman Gerry Rice told Bloomberg.

Rice said that there is a “serious risk” […]

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The decision by the Central Bank of Lebanon to allow depositors to withdraw U.S. dollars from their accounts on a monthly basis risks higher inflation, the International Monetary Fund (IMF) warned on Thursday. In light of the shortage of foreign currency in Lebanon and the persistent need to subsidize imports, it isn’t clear how the withdrawals enabled by the Banque du Liban (BDL) will...read more...