Lebanese pound slumps again as Macron cancels visit, Beirut Port probe is suspended

Lebanese pound slumps again as Macron cancels visit, Beirut Port probe is suspended

The Lebanese pound has resumed its decline against the dollar, trading at LBP8,500 on the black market on Friday, as hopes faded on breaking the Cabinet formation deadlock.

The currency crisis deepened after French President Emmanuel Macron cancelled all of his scheduled trips, including the one to Lebanon next Tuesday after testing positive for coronavirus.

Official statistics reveal the combined impact of the economic crisis, the coronavirus pandemic and the Beirut Port explosion

News of a suspension of investigation into the Beirut port blast for 10 days raised further concerns on the money market.

Macron's visit to Beirut previously scheduled on December 22, the third in more than four months after the devastating Beirut port blast, offered hope of exerting more pressure on rival political factions to form a new government capable of preventing the country from sinking into economy catastrophe.

French Foreign minister Jean-Yves Le Drian warned earlier this week that Lebanon "is the Titanic but without the orchestra", adding: "The Lebanese are in complete denial as they sink, and there isn't even the music."

France is losing patience with Lebanon's politicians who stand in the way of sweeping reforms that donors say are imperative for badly-needed financial aid to be released.

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