Breaking Lebanon's FX Peg Could Be Ruinous for Hugely Indebted Country

Lebanon’s political and banking crisis has put growing pressure on its 22-year-old currency peg to the U.S. dollar and foreign funds fear a devaluation now could be disastrous for a country with one of the world’s biggest foreign debt burdens, Reuters reported. The risk of devaluation has risen as Lebanon grapples with its most severe economic pressures since the 1975-90 civil war, with widespread protests that have toppled the coalition government of Saad al-Hariri. Central Bank Governor Riad Salameh governor once again ruled out a break in the long-standing peg on Monday, saying the government had the means to maintain it. Read more