Lebanon PM: Central Bank Gov responsible for currency falls

Leban's prime minister said on Friday he was holding country's Central Bank goverr responsible for downward spiral of national currency, accusing him of pursuing "opaque" policies that sent pound crashing against dollar.

government has agreed with Leban's president to hire an independent international auditing company to review Central Bank's performance, Prime Minister Hassan Diab said.

move, and premier's speech, were an indication of a widening rift with country's longtime chief financial decision-maker, Goverr Ri Salameh.

Diab urged Salameh to speak openly to public about financial crisis, hinting that goverr has intentionally engineered crash of pound.

Lebanese pound has been on a downward trajectory for weeks amid a worsening liquidity crunch and an ecomic slump.

But it appeared to be in a free fall over last few days, selling as low as 3,800 pounds to dollar, down from a fixed peg of 1,500 pounds to dollar in place for 30 years.

Central Bank's decision earlier this week requires local banks to convert cash withdrawals from foreign currency accounts to pound, at a market rate determined daily by banks.

It also applies for money transfers, which was first implemented Friday, when Lebanese media said rate was 3,625 pounds to dollar.

decision sucked dollars out of market, driving up black market price, as well as panic among depositors.

Protesters took to streets on Thursday to deunce goverr's decision in rallies that h all but disappeared since movement restrictions were put in place because of spre of coronavirus.

Experts say Central Bank's decision is likely to swamp market with Lebanese pound and appeared designed to replenish local banks' foreign currency reserves and reduce gaps in ir balance sheets.