Lebanon economic crisis: IMF says dollar-deposit plan risks higher inflation

Lebanon economic crisis: IMF says dollar-deposit plan risks higher inflation

By Eric Martin and Dana Khraiche

The International Monetary Fund said the Lebanese central bank's decision allowing dollar depositors to withdraw funds partly in the U.S. currency risks fanning prices.

Gerry Rice, spokesman for the Washington-based fund, said it wasn't clear how the withdrawals would be financed given the scarcity of foreign currency amid the country's economic crisis, and the need to continue financing imports of goods and services.