The overnight interbank rate for Lebanese pounds fell to 15 percent on Monday thanks to increased liquidity, two banking sources told Reuters, after last week spiking to 75 percent, its highest rate since a political crisis last year.
A third banking source said the rate was between 10 and 15 percent on Monday. "It's calming down for the time being. Last week it was a bit squeezed," one of the sources said.
A range of factors was cited to explain last week's spike, including that banks were seeking to keep their assets at a high level ahead of the end of the year, and that some individuals may be converting pounds to dollars, boosting demand for pounds.
