BEIRUT: The Lebanese pound slightly dropped against the US dollar Wednesday, trading at around LL7,475 on the black market.

Black market exchangers were selling the dollar for around LL7,500 and buying it for around LL7,450. The exchange rate of the pound against the dollar was LL7,450 on Tuesday.

Licensed currency exchangers were still trading the dollar at the rates set by the Central Bank, which have remained unchanged for months, at LL3,850 to buy and LL3,900 to sell.

As talks continue on the formation of a new government, the current Cabinet remains in caretaker capacity unable to draw up and enact important decisions, while the country is in the midst of its worst economic crisis, including resuming negotiations with the International Monetary Fund over a $10 billion bailout.

The IMF talks are crucial to revitalize the collapsing economy and put a plan in motion for reforms in the banking sector and economy, and unite the three existing exchange rates.

An exchange rate of LL1,507.5 to the dollar the 23-year-old Central Bank peg for subsidization of essential goods such as wheat, fuel and medicine exists. A rate of LL3,900 has been adopted for withdrawals from dollar bank accounts and the subsidization of a basket of goods and commodities by the Economy Ministry. But the black market exchange rate is adopted by many businesses.

The Central Bank last month said its dwindling foreign currency reserves will only be sufficient to feed the subsidy of essential goods for another three months only.

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