Lebanon’s PM Says IMF Talks Progressing Well

FILE PHOTO: Lebanese Prime Minister Najib Mikati speaks during an interview with Reuters at the government palace in Beirut, Lebanon October 14, 2021. REUTERS/Mohamed Azakir
FILE PHOTO: Lebanese Prime Minister Najib Mikati speaks during an interview with Reuters at the government palace in Beirut, Lebanon October 14, 2021. REUTERS/Mohamed Azakir
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Lebanon’s PM Says IMF Talks Progressing Well

FILE PHOTO: Lebanese Prime Minister Najib Mikati speaks during an interview with Reuters at the government palace in Beirut, Lebanon October 14, 2021. REUTERS/Mohamed Azakir
FILE PHOTO: Lebanese Prime Minister Najib Mikati speaks during an interview with Reuters at the government palace in Beirut, Lebanon October 14, 2021. REUTERS/Mohamed Azakir

Lebanon’s Prime Minister Najib Mikati said on Monday that preliminary talks with the International Monetary Fund were advancing well and a revised financial recovery plan would be complete by the end of November.

“For the first time we have handed over unified financial figures,” Mikati told an economy conference in Beirut. “We hope we will have a letter of intent soon.”

Talks with the IMF that aimed to secure financial support broke down last year amid disagreements over the scale of losses in the country’s financial sector that collapsed in late 2019, Reuters reported.

The central bank, private banks and a parliamentary committee representing major political parties argued that losses were much smaller than the roughly $83 billion estimated by the plan, despite the IMF viewing the figures as accurate.

Mikati said the central bank was now “cooperating fully” with Lazard, the advisor that helped draw up the previous plan, adding that the updated version would be ready this month.

Economists see an IMF program as the only way for Lebanon to unlock international aid and begin recovering from one of the world’s worst financial crises.

The economic meltdown has translated into severe shortages of basic goods including fuel and medication.

Mikati said Lebanon was seeking to increase electricity output from a current five hours per day to between 10 and 15 hours per day by the end of the year through a series of deals with Iraq, Egypt and Jordan.

Lebanon’s ailing electricity sector constitutes a main drain on state finances, costing taxpayers more than $40 billion since 1992 even though the state never provided round-the-clock power.

In addition to monthly shipments of 75,000 tonnes of crude oil from Iraq that provide about five hours a day of power, Mikati said Lebanon aimed to secure Egyptian gas to produce an additional four hours of power by the end of the year.

He said Jordan was willing to provide about two hours worth of power for a cost of 12 cents per kilowatt hour (kWh), and work was underway on a long-term plan to secure 24/7 electricity.

While Mikati struck an optimistic tone, his government has not met for nearly a month due to a row over the probe into the deadly August 2020 Beirut port blast and will lose decision-making powers after elections scheduled for spring next year.

Mikati said “no-one can prevent the holding of elections,” before parliament’s mandate ends on May 21.



Dollar Drifts as Traders Grapple with Tariff Uncertainty, Volatility

A teller counts US dollar bank notes at a money changer in Jakarta, Indonesia, April 9, 2025. Picture taken through glass. REUTERS/Willy Kurniawan/File Photo
A teller counts US dollar bank notes at a money changer in Jakarta, Indonesia, April 9, 2025. Picture taken through glass. REUTERS/Willy Kurniawan/File Photo
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Dollar Drifts as Traders Grapple with Tariff Uncertainty, Volatility

A teller counts US dollar bank notes at a money changer in Jakarta, Indonesia, April 9, 2025. Picture taken through glass. REUTERS/Willy Kurniawan/File Photo
A teller counts US dollar bank notes at a money changer in Jakarta, Indonesia, April 9, 2025. Picture taken through glass. REUTERS/Willy Kurniawan/File Photo

The dollar wobbled on Tuesday, languishing near a three-year low against the euro and a six-month trough against the yen it hit last week, as investors struggled to make sense of the back-and-forth changes on US tariffs.

Still, currency markets were a lot calmer in Asian hours after last week's turmoil that badly bruised the dollar despite a surge in Treasury yields, highlighting shaky investor confidence in the greenback and US assets.

The dollar was slightly weaker at 142.99 yen, staying close to the six-month low of 142.05 it touched on Friday. The euro last fetched $1.136, just below the three-year high of $1.1474 hit last week.

After slumping to a 10-year low against the Swiss franc last week, the dollar was 0.2% higher on Tuesday. Still, the dollar is down nearly 8% against the Swiss franc this month, set for its biggest monthly drop since December 2008, Reuters reported.

Market focus has been on the ever-shifting tariff headlines with the US removing smartphones and other electronics from its duties on China over the weekend providing some relief, although comments from President Donald Trump suggested the reprieve is likely to be for a short time.

Trump's imposition and then abrupt postponement of most tariffs on goods imported to the US has sowed confusion, adding to the uncertainty for investors and policymakers around the world.

Kieran Williams, head of Asia FX at InTouch Capital Markets, said the policy uncertainty and erosion in investor confidence are fuelling a slow but steady rotation out of dollar assets.

"The recent backpedaling on US tariffs has eased some of the acute market anxiety, softening the dollar’s safe-haven appeal in the near term."

The yield on the benchmark US 10-year Treasury note eased 1.5 basis points to 4.348% after dropping nearly 13 basis points in the previous session.

The yields had risen about 50 bps last week in the biggest weekly gain in over two decades as analysts and investors questioned US bonds' status as the world’s safest assets.

"Last week was all about deleveraging, liquidation, and asset re-allocation out of US assets. This week's tone is calmer in what is a holiday shortened week," said Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities.

"Helping to set the tone were dovish comments from Fed officials suggesting they are looking beyond inflation."

Fed Governor Christopher Waller said on Monday the Trump administration's tariff policies are a major shock to the US economy that could lead the Federal Reserve to cut interest rates to head off a recession even if inflation remains high.

Traders are pricing in 86 bps of cuts from the Fed for the rest of the year, LSEG data showed.

The dollar index, which measures the US currency against six other units, was at 99.641, not far from the three-year low it touched last week. The index is down over 4% this month, set for its biggest monthly drop since November 2022.

Sterling last bought $1.3215. The Australian dollar rose 0.66% to $0.6369, while the New Zealand dollar surged to its highest in four and half months and was last 0.88% higher at $0.5926.