• Home
• /
• Business

Lebanon to build forex reserves

A 50-strong team is investigating the February assassination of Rafik AlHariri, a billionaire who symbolised Lebanon’s drive to rebuild from the ruins of the 1975-1990 civil war.

A UN official said earlier this week the team would probably need more time than the designated three months to complete its findings. The probe began in mid-June.

“We have taken our precautions against all expectations,” Azour said at a news conference when asked about the possible impact of the probe on the Lebanese economy and financial markets.

“We have covered our needs in Lebanese pounds until the end of the year and are preparing to secure the needed funding in foreign currencies for at least four or five months,” he said in the remarks carried by the official National News Agency.

Lebanon’s gross foreign exchange reserves nudged up to $10.89 billion by mid August from $10.45 billion two weeks earlier, the central bank said on Tuesday.

The killing of Hariri in a bomb blast shocked financial markets, and authorities have scrambled to defend the currency and maintain confidence.

Many Lebanese hold Syria, which controlled Lebanese politics and security after the civil war, at least indirectly responsible for the murder. Damascus, which pulled its troops from Lebanon in April, strongly denies any role.

“We want to be able to cope with any political changes on one hand, and give more confidence to markets and people on the other,” Azour said.

Azour also stressed the need to embark on a privatisation drive, long stalled because of political crises.

“Privatisation is necessary to free sectors, improve services ... and float parts of the (privatised) companies on the stock market so that people become partners too,” he said.