The deterioration in relations between Lebanon and Saudi Arabia in recent days has raised fresh concerns over the sustainability of Lebanon’s dollar peg. While the country has substantial FX reserves, these would be quickly eroded in the event of severe crisis, forcing the authorities to devalue the pound. This could ultimately create problems for the government in servicing its large foreign currency debt.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services