The lira was trading at LL24,100 to the dollar on the parallel market Wednesday. (Credit: AFP)
BEIRUT — In Wednesday trading, the lira dropped to a new record low of LL24,100 to the US dollar on the parallel market. The previous record low, LL24,000, was briefly touched on July 16 after former Prime Minister Saad Hariri gave up on trying to form a government and stepped down from his position as premier-designate.
Here’s what we know:
• The lira's plunge follows conflicting reports from Prime Minister Najib Mikati and Banque du Liban Governor Riad Salameh about progress in talks with the International Monetary Fund about a financial bailout for the country.
• Rumors circulating about auditing firm Alvarez & Marsal’s intention to withdraw from its contract to audit the central bank and public institutions due to alleged stalling by BDL in providing documents have also contributed to the lira's recent loss of value on the parallel market.
• Meanwhile, inflation continues to soar. The government’s Central Administration of Statistics on Tuesday released numbers showing that for the 16th month in a row Lebanon has recorded triple-digit year-on-year inflation.