The market is demanding lira signaling start of turnaround
Boost to savings in the national currency

Since the formation of the new Cabinet, U.S. dollars are being offered on the local market to buy liras, according to Governor of the Central Bank Riad Salameh.

“This strengthens again the role of the Lebanese currency as a vehicle for savings,” Salameh said. 

Marwan Barakat, Chief Economist and Head of Research at the Bank Audi group, said that the market is more relaxed as demand for liras is greater than demand for dollars. 

The market perception of the country’s sovereign risk has improved significantly with the five-year Credit Default Swap (CDS) falling to 710 basis points (bps) after the cabinet formation from 900 bps two weeks ago, Barakat said. CDS prices reveal the cost of insuring the sovereign debt.

Reported by Shikrallah Nakhoul
Source : Businessnews
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