LBP Reaches 25,000 amid Judicial Escalation against Banks

The Lebanese pound reached 25,000 against the dollar on Thursday, after having been relatively stable in the past months following a central bank circular that had allowed banks to buy dollar banknotes from the BDL.

The central bank intervention in January had led to a major recovery of the Lebanese lira value as it strengthened to around 20,000 after it had reached a low of 34,000.

Banks on Monday had declared a two-day strike to protest recent moves by Lebanon's judiciary against local lenders.

Mount Lebanon Prosecutor Judge Ghada Aoun had frozen the assets of Creditbank, Bank of Beirut, Bank Audi, SGBL, BLOM Bank and BankMed, as she investigates possible transfers of billions of dollars aboard during the country’s economic meltdown.

Last week, Lebanese authorities had also seized the assets of Fransabank, based on an order issued by Judge Mariana Anani.

A senior banking official warned that Lebanon will likely plunge into a dire LBP liquidity crisis, amid the current unusual escalation in judicial measures against banks.