The Lebanese financial sector’s net foreign assets contracted by $347.4 million in February 2020 in comparison with contractions of $157.9 million in January and $550.1 million in February 2019. This can be attributed to the $989.2 million drop in the net foreign assets of the Central Bank which outweighed the $641.7 million increase in the net foreign assets of banks & financial institutions as a result of the partial sale of a portion of their Eurobond holdings to foreign investors to replenish their foreign currency liquidity outside Lebanon. On a cumulative basis, the financial sector’s net foreign assets plunged by $505.3 million during the first two months of the year 2020, in comparison with a $1.93 billion drop in the same period in 2019. The said contraction owes to the $1.60 billion drop in the net foreign assets of the Central Bank which outweighed the $1.10 billion expansion in the net foreign assets of banks & financial institutions.