Moody’s announced that Lebanon’s available reserves fell to $ 1 billion by the end of February, according to data from the Central Bank and Haver Analytics.

Moody’s warned in an emailed note that Lebanon’s loss of correspondent banking relationships would accelerate its economic downturn.

It stated in the memo “The encroachment on the mandatory reserves of banks with the Banque du Liban in light of the continuing impasse of the government will increase the risks to the banks, thus endangering the remaining correspondent banking relationships of Lebanon, and further undermining the availability of cross-border payment services for transfers, trade and tourism, The main pillars of the economy ”.

It added that the permanent loss of correspondent banking relationships will increase Lebanon’s dependence on official external financing, as cross-border payments and clearing services will remain in a state of paralysis even after a comprehensive debt restructuring, which will dampen any potential recovery.

It indicated that Lebanon’s available reserves decreased to $ 1 billion by the end of February, based on data from the Central Bank and Haver Analytics.