95 cents according to Thomson Reuters data
CDS jump as political crisis escalates
(Adds comment, detail)
LONDON, Nov 7 (Reuters) canada goose uk outlet Lebanon dollar bonds fell and the cost of insuring exposure to its debt reached its highest since late 2008 canada goose coats on Tuesday, as Saudi Arabia accused Beirut of Canada Goose Online declaring war against it,
Lebanon has been thrust into the centre of regional rivalry between Saudi Arabia and Iran since the Saudi allied Lebanese politician Saad al Hariri quit as prime canada goose uk shop minister on Saturday, Canada Goose online blaming Iran and Hezbollah in his resignation speech.
Lebanon 2022 issue fell 3.4 cents to 92 cents in the dollar, cheap Canada Goose trading at its lowest ever level, according to Thomson Reuters data.
The 2025 issue cheap canada goose uk is down 2.4 cents to 89.95 cents according to Thomson Reuters data, and the lowest Discount Goose level since it uk canada goose was issued in February 2015.
The cost of insuring exposure to canada goose factory sale Lebanese debt hit its highest since late 2008 on Tuesday, with five year credit default swaps (CDS) canada goose black friday sale for Lebanon jumping 51 basis points (bps) from Monday close to 588 bps, according to IHS Markit data. Treasuries that investors buy canada goose jacket demand to hold Lebanese debt jumped by 55 bps from Monday Canada Goose Parka close to 581 bps.
These were well above levels for buy canada goose jacket cheap Iraq, which stood at 477 bps, up 9 bps from Monday close.
A Lebanese finance ministry official told Reuters the drop in price of the Eurobonds was at levels typical for political shocks in Lebanon, with trade volumes low.
He said there was currently no risk to financial stability with no capital flight and limited demand to transfer Lebanese pounds into dollars.
One banking source told Reuters he saw the canada goose store most significant movement of money out of the country for a while canadian goose jacket when banks opened on Monday, although there canada goose coats on sale has been an uptick in recent months because of the poor economic environment.
He attributed the outflow to concern following Hariri resignation.
The finance Canada Goose Outlet minister, central bank governor and head of the banking association have over the past two days made statements stressing Lebanon financial and monetary stability. dollar, due Canada Goose Jackets to high foreign reserves at the central bank.
They stressed Lebanon past resilience to political uk canada goose outlet turmoil and high liquidity of Lebanese banks.
Bank Audi Chief Economist Marwan Barakat, chief Canada Goose sale economist at Lebanon Bank Audi, said the roughly $44 billion of central bank foreign reserves cover around 80 percent of Lebanese pound money supply.
The vast canada goose majority of deposits in Lebanese banks are held by Lebanese who historically have not withdrawn their money during political and security crises.
Barakat said canada goose clearance during the difficult years of 2005 and 2006, marked by the assassination of former Prime Minister Rafik al Hariri and a war between Israel and Hezbollah on Lebanese soil, deposits mostly stayed put.
maximum outflows we witnessed was 4 percent of the deposit base, he canada goose uk black friday said.
But economic research consultancy cagooseclearance Capital Economics said on Tuesday canada goose clearance sale the deterioration of Saudi Lebanon relations has raised fresh concerns over the sustainability of Lebanon currency peg.
happened is likely to impact investments, Canada Goose Coats On Sale likely to impact tourism and ultimately likely to impact growth in Lebanon, he said. (Reporting by Lisa Barrington, Claire Milhench and Karin Strohecker, editing by Richard Balmforth).
