Central bank’s plan to let Lebanese dollar depositors raise funds risks fuelling further inflation, IMF says

Central bank’s plan to let Lebanese dollar depositors raise funds risks fuelling further inflation, IMF says

The International Monetary Fund said the Lebanese central bank's decision to allow dollar depositors to withdraw funds partly in the US 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.