Search Results

You are looking at 1 - 10 of 160 items for :

  • "Lebanese pound" x
Clear All
Mr. Jose Martelino, Mr. S. Nuri Erbas, Mr. Adnan Mazarei, Ms. Sena Eken, and Mr. Paul Cashin

This section briefly reviews developments in the exchange rate of the Lebanese pound and provides an empirical study of the relationship between movements in the exchange rate and inflation. The evidence suggests that since the mid-1970s, the volatility of the Lebanese pound exchange rate has increased substantially, while the relationship between exchange rate movements and inflation has become more significant. Evolution of the Exchange Rate Lebanon, unlike most countries, has had a flexible exchange rate system since 1948. The monetary authorities have

International Monetary Fund

Banque du Liban (BdL) in support of the Lebanese pound, holding interest rates stable in the midst of strong regional and domestic uncertainty has helped maintain market confidence over the past year. The authorities are fully aware of the costs for the BdL’s balance sheet and foreign reserves. Nonetheless, while they are keen to reduce the Treasury’s reliance on the BdL, they do not concur with staff’s recommendation to raise interest rates on Treasury bills with maturities of less than 7 years. In the current turbulent times, confidence is paramount, and the

International Monetary Fund

Europe, primarily through second-round effects. The authorities have so far managed the downturn skillfully, using buffers built up during the upswing. The Banque du Liban (BdL) relied on its large foreign reserves to intervene forcefully when the Lebanese pound came under pressure from deposit outflows and currency conversions in January 2011. Despite these interventions, gross foreign reserves increased to $32 billion by end-November 2011 as the BdL issued foreign currency Certificates of Deposit and banks placed large foreign currency excess reserves with the BdL