"} 61:{"position":6,"content":"

As a result, commercial banks have gradually stopped subscribing to weekly treasury bill auctions which has left the central bank to buy up government debt - incurring losses on the difference between interest it receives on this and the high interest rates it pays out to commercial banks to keep money flowing in.

"} 62:{"position":7,"content":"

Salameh said the bank had ample foreign currency to maintain its targets of keeping the Lebanese pound stable and also be able to back the government's foreign currency needs.

"} 63:{"position":8,"content":"

"We are trying to maintain our foreign assets, we are not in a drive to increase them, and that is why we kept our interest rates unchanged over the past year," said Salameh, who attended an investment conference in London.

"} 64:{"position":9,"content":"

However, ratings agency Moody's sounded some alarm bells when it changed Lebanon's outlook to negative from stable on Thursday citing an increase in risks to the government's liquidity position and the country's financial stability.

"} 65:{"position":10,"content":"

Lebanon has been mired in political wrangling, with rival parties unable to form a government since May's parliamentary election.

"} 66:{"position":11,"content":"

Meanwhile the bigger global backdrop has added to policy makers' woes were rising global interest rates, said Salameh.

"} 67:{"position":12,"content":"

A stronger dollar and rising U.S. Treasury yields have inflicted a lot of pain on emerging markets throughout 2018. The U.S. Federal Reserve is expected to deliver another rate hike when meeting next week, and a Reuters poll showed the majority of economists expected two increases in 2019.

"} 68:{"position":13,"content":"

"It is a concern. It will add to our cost to fund the public sector and the private sector and that cost is here because Lebanon is essentially funded by credit and therefore the interest rates are important."

"} 69:{"position":14,"con

Lebanon's governor central bank will continue financial operations in 2019