The lira stengthened against the dollar Friday as Information Minister George Kurdahi tendered his resignation. (Credit: Reuters)
BEIRUT — The lira strengthened against the US dollar Friday following Information Minister George Kurdahi’s resignation. It is currently trading at LL22,500 on the parallel market.
Here’s what we know:
• Lebanon’s national currency has risen by 8 percent against the dollar since yesterday when news of the information minister’s expected resignation started making the rounds.
• However, it remains 10 percent below the levels seen in October (LL20,500) when a video of an interview in which Kurdahi made provocative comments about Saudi Arabia’s intervention in the war in Yemen was aired.
• How the Gulf countries will react to the resignation could set the tone for the lira’s next move. Following Kurdahi’s remarks, Saudi Arabia expelled Lebanon’s ambassador to the kingdom, recalled its envoy in Beirut and placed a blanket ban on Lebanese imports. The United Arab Emirates, Kuwait and Bahrain all also cut diplomatic ties with Lebanon.
• Longer term, the lira continues to be pressured by a lack of clarity around International Monetary Fund bailout negotiations and the government's failure to progress serious reforms.
• A joint parliamentary committee will meet Monday to discuss the capital control draft law, which is one of the requirements before reaching an agreement with the IMF.