Lebanon’s coronavirus lockdown piles pressure on flagging currency – ZAWYA

Lebanon’s coronavirus lockdown piles pressure on flagging currency – ZAWYA

BEIRUT- The battered Lebanese pound has weakened even more during a coronavirus lockdown, with banks blocking access to already scarce dollars, forcing up their price on the parallel market and the cost of imports the heavily indebted country relies on.. Since the government declared a medical emergency on March 15, Lebanon's cash-strapped banks have limited their services to critical imports and paying out salaries in local currency while opening only a handful of branches.. The government had sought in recent weeks to crack down on foreign exchange bureaus selling above an agreed rate of 2,000 pounds per dollar, with some shut down and others turning away customers seeking higher rates, making dollars more elusive.. Bankers have put reduced dollar circulation in recent weeks down to worldwide airport closures choking the flow of dollars typically brought in by travellers and cargo shipments of banknotes..