BEIRUT: The lines snaked around the block. Then they swelled to fill the whole street, before they turned into a raucous mob of men shoving to the front of the line. There at the exchange bureau, they could buy rationed dollars, the hottest commodity in Lebanon.
The small Mediterranean country’s financial meltdown has thrown Lebanese into a frantic search for dollars as their local currency’s value evaporates. To get the precious hard currency, they must navigate labyrinthine regulations, exploiting any loopholes they can to rescue their earnings.
Every transaction, from doctor fees to store purchases to rent, is negotiated day by day, juggling the tumbling Lebanese pound and multiple, changing dollar exchange rates. Those who can are snapping up luxury goods or real estate, trying to use their dollars trapped in bank accounts frozen by the cash-strapped authorities.
The turmoil is deepening resentment of the political elite and the once flourishing banking system — and fueling desperation.
“They are going to crash us into a wall,” Chris Georgian, a 25-year-old student, said, trying to buy $600 at an exchange bureau to send for his university fees in Armenia.
Last week, a 61-year-old man apparently distraught over his economic situation shot and killed himself on a Beirut commercial street, one of multiple suicides during the crisis.
Despite survival skills honed by political tension and wars, nothing prepared Lebanese for having to line up to buy money.
During the 15-year civil war and Israel’s invasion and occupation of the south and Beirut, there may have been queues for water or bread, but Lebanon was always flush with dollars.
Since 1997, the local currency, the pound, was pegged at around 1,500 to the dollar, and Lebanese used the two interchangeably.
That stability was built on what experts say was essentially a Ponzi scheme that let banks and the elite profit while allowing Lebanese to live beyond their means.
Successive governments borrowed from private banks to finance massive public debt and pay for vital imports like fuel — but also luxury goods — eating into depositors’ dollar accounts. Most of those deposits were from Lebanese expats attracted by high interest rates.
It collapsed when remittances and direct foreign investments plunged in recent years.
In the ensuing liquidity crunch, the pound has lost nearly 85% of its value. Tens of thousands have fallen into poverty, wages are worth only a fraction of what they once were, and prices are skyrocketing — stripping Lebanon of its trademark joie de vivre and vibrancy.
Chain retailers have shut down, unable to import or price goods with the fluctuating rates. Some vendors have either closed or only take payment in dollars.
Dollar accounts have been frozen, and those trapped dollars have become “Monopoly money” with no value outside Lebanon, said Dan Azzi, a former banker and analyst. He coined a name for that currency, the “Lollar” or Lebanese dollar.
People began hoarding cash dollars, getting relatives living abroad to transfer dollars, which — unlike frozen local accounts — can be withdrawn from the bank.
Some sell gold for dollars. “We buy gold at the highest price $39-$55 and in cash,” reads one jeweler’s marketing telephone message.
The peg remains in place officially, even as the black market price of a dollar has spiraled to at least five times that. Meanwhile, authorities imposed rationing on exchange bureaus, limiting how many dollars a person can buy and setting a rate higher than the peg but lower than the black market.
That fanned the raucous lines. Some bought dollars only to sell them on the black market. New phone apps cropped up to keep track of multiple rates.
“Isn’t all this humiliating?” said Elie, a security guard keeping order at an exchange bureau. “When senior officials were making money, we were getting some of it. Now they aren’t anymore, so they deny it to us,” he said, declining to give his last name because of his job.
Many scramble for ways to use their trapped “Lollars,” fearing they could eventually lose them completely.
Lines formed outside luxury retailer Louis Vuitton because it was selling at a rate half the black market. Others use stuck dollars to settle bank loans, still valued at the official peg. Azzi estimates loans up to $15 billion have been paid already.
Ghassan Frem, a dentist, paid a friend’s loan of over $30,000 with his “Lollars.” She paid him the money in an account abroad. It is a win-win: He uses his “dead” dollars, and the friend settles her loan at a discount.
Meanwhile, Frem bought $950-worth of new air conditioners on his credit card. The trick is: He pays his credit card bill at the official rate with pounds he bought on the black market for far fewer dollars.
Many use this loophole, buying merchandise or doing renovations whether they need it or not, to rescue trapped dollars.
“Anyone who can get back at the banks is doing some good,” Frem said. “We do to them what they have done to us.”
On social media, some proposed organizing a peer-to-peer platform to avoid using banks.
Meanwhile, real estate transactions jumped more than 16% in the first quarter of 2020, according to the General Directorate of Land Registry. One of Lebanon’s largest real estate companies, Solidere, reported a profit for the first time since 2018.
For his dentist clinic, Frem negotiates purchasing supplies item by item, hour by hour. One Monday afternoon, he ordered a product and by the time it arrived the next day, the dollar price had gone up 20%. “The delivery guy got a text message with the new price when he arrived,” Frem said.
For Georgian, the student, his education is on the line.
A third-year psychology student in a Yerevan university, he returned to Lebanon because of coronavirus. With his parents’ dollars locked up, he has to chase dollars to finance his return.
At the exchange office, he asked the guard to walk him through the documents he needed. Under new rules to curb profiteering, you must prove you need rationed dollars to pay education fees, rent, medical fees or salaries for foreign workers. No one gets cash — the dollars you buy are sent directly to the destination.
Still, Georgian was relieved. His school fees are $600, and the cost for that at the exchange is about half what it would be on the black market, saving him enough to live for months in Yerevan.
“If the dollar keeps rising, I will never go back,” he said. “I will lose my education.”
Georgian questioned his parents’ decision to remain in Lebanon despite constant complaints of corruption.
“They said they didn’t think it will be this bad,” he said, shaking his head.
Hottest commodity in Lebanon’s economic chaos: The US dollar
https://arab.news/b9cgg
Hottest commodity in Lebanon’s economic chaos: The US dollar
- The financial meltdown has thrown Lebanese into a frantic search for dollars as their local currency’s value evaporates
19 arrested after Turkiye hotel inferno disaster
ANKARA: Turkish authorities have arrested 19 people as part of an investigation into a fire at a ski resort hotel that killed 78 people, Anadolu state news agency reported Monday.
Those detained include a deputy mayor for the town responsible for the Kartalkaya resort, a deputy fire chief and the head of another establishment belonging to the hotel owner, the agency said.
The investigation into the January 21 disaster has focused on the hotel management and the actions of the emergency services and authorities in the town of Bolu.
On Friday, the owner of the Grand Karta hotel, his son-in-law, the hotel’s chief electrician and its head chef were arrested.
Survivors and experts have highlighted the absence of fire alarms and sprinklers, working smoke detectors and proper fire escape routes at the 12-story building that overlooked the ski slopes.
Interior Minister Ali Yerlikaya has said 238 people were staying in the Grand Karta hotel when the inferno tore through the building in the middle of the night.
Palestinians return to north Gaza after breakthrough on hostages
- Israel and Hamas said they had reached a deal for the release of another six hostages
- Crowds began making their way north along a coastal road on foot Monday morning
NUSEIRAT, Palestinian Territories: Masses of displaced Palestinians began streaming toward the north of the war-battered Gaza Strip on Monday after Israel and Hamas said they had reached a deal for the release of another six hostages.
The breakthrough preserves a fragile ceasefire and paves the way for more hostage-prisoner swaps under an agreement aimed at ending the more than 15-month conflict, which has devastated the Gaza Strip and displaced nearly all its residents.
Israel had been preventing Palestinians from returning to their homes in northern Gaza, accusing Hamas of violating the terms of the truce, but Prime Minister Benjamin Netanyahu’s office said late Sunday they would be allowed to pass after the new deal was reached.
Crowds began making their way north along a coastal road on foot Monday morning, carrying what belongings they could, AFPTV images showed.
“It’s a great feeling when you go back home, back to your family, relatives and loved ones, and inspect your house — if it is still a house,” displaced Gazan Ibrahim Abu Hassera said.
Hamas called the return “a victory” for Palestinians that “signals the failure and defeat of the plans for occupation and displacement.”
Its ally Islamic Jihad, meanwhile, called it a “response to all those who dream of displacing our people.”
The comments came after US President Donald Trump floated an idea to “clean out” Gaza and resettle Palestinians in Jordan and Egypt, drawing condemnation from regional leaders.
President Mahmud Abbas, whose Palestinian Authority is based in the Israeli-occupied West Bank, issued a “strong rejection and condemnation of any projects” aimed at displacing Palestinians from Gaza, his office said.
Bassem Naim, a member of Hamas’s political bureau, said that Palestinians would “foil such projects,” as they have done to similar plans “for displacement and alternative homelands over the decades.”
For Palestinians, any attempt to move them from Gaza would evoke dark memories of what the Arab world calls the “Nakba,” or catastrophe — the mass displacement of Palestinians during Israel’s creation in 1948.
“We say to Trump and the whole world: we will not leave Palestine or Gaza, no matter what happens,” said displaced Gaza resident Rashad Al-Naji.
Trump had floated the idea to reporters Saturday aboard Air Force One: “You’re talking about probably a million and half people, and we just clean out that whole thing.”
Moving Gaza’s roughly 2.4 million inhabitants could be done “temporarily or could be long term,” he said.
Israel’s far-right Finance Minister Bezalel Smotrich — who opposed the truce deal and has voiced support for re-establishing Israeli settlements in Gaza — called Trump’s suggestion of “a great idea.”
The Arab League rejected the idea, warning against “attempts to uproot the Palestinian people from their land,” saying their forced displacement could “only be called ethnic cleansing.”
Jordanian Foreign Minister Ayman Safadi said “our rejection of the displacement of Palestinians is firm and will not change. Jordan is for Jordanians and Palestine is for Palestinians.”
Egypt’s foreign ministry said it rejected any infringement of Palestinians’ “inalienable rights.”
Israel had said it would prevent Palestinians’ passage to the north until the release of Arbel Yehud, a civilian woman hostage who it maintained should have been freed on Saturday.
But Netanyahu’s office later said a deal had been reached for the release of three hostages on Thursday, including Yehud, as well as another three on Saturday.
Hamas confirmed the agreement in its own statement Monday.
During the first phase of the Gaza truce, 33 hostages are supposed to be freed in staggered releases over six weeks in exchange for around 1,900 Palestinians held by the Israelis.
The most recent swap saw four Israeli women hostages, all soldiers, and 200 prisoners, nearly all Palestinian, released Saturday in the second such exchange during the fragile truce entering its second week.
“We want the agreement to continue and for them to bring our children back as quickly as possible — and all at once,” said Dani Miran, whose hostage son Omri is not slated for release during the first phase.
The truce has brought a surge of food, fuel, medicines and other aid into rubble-strewn Gaza, but the UN says “the humanitarian situation remains dire.”
Of the 251 hostages seized during Hamas’s October 7, 2023 attack that ignited the war, 87 remain in Gaza, including 34 the military says are dead.
The Hamas attack resulted in the deaths of 1,210 people, mostly civilians, according to an AFP tally based on official Israeli figures.
Israel’s retaliatory offensive has killed at least 47,306 people in Gaza, the majority civilians, according to figures from the Hamas-run territory’s health ministry that the United Nations considers reliable.
EU to agree easing Syria sanctions
- Europe is keen to help the reconstruction of the war-ravaged country and build bridges with its new leadership
- But some EU countries worry about moving too fast to embrace the new Islamist-led rulers in Damascus
BRUSSELS: EU foreign policy chief Kaja Kallas said she expected the bloc to agree Monday to begin easing sanctions on Syria after the ouster of Bashar Assad.
“It is a step for step approach,” Kallas said at the start of a meeting of EU foreign ministers in Brussels to discuss the move.
Europe is keen to help the reconstruction of the war-ravaged country and build bridges with its new leadership after the end of the Assad family’s five-decade rule.
But some EU countries worry about moving too fast to embrace the new Islamist-led rulers in Damascus.
The 27-nation EU imposed wide-ranging sanctions on the Assad government and Syria’s economy during its civil war.
Brussels says it is now willing to ease sanctions on the expectation the new authorities make good on commitments to form an inclusive transition.
“If they are doing the right steps, then we are willing to do the steps on our behalf as well,” Kallas said.
France’s Foreign Minister Jean-Noel Barrot said the EU could start by suspending sanctions on the energy, transport and banking sectors.
Diplomats say the EU will only suspend the sanctions and not lift them definitively to maintain leverage over the Syrian leadership.
Syria’s new de facto leader Ahmed Al-Sharaa, and the Islamist group he led Hayat Tahrir Al-Sham, remain under EU sanctions.
Diplomats said there was still no discussion about lifting those designations, as with others on the Assad regime.
Deal reached to release more Israeli hostages and allow Palestinians into north Gaza
- Netanyahu’s office says another six hostages to be released in coming week after talks with Hamas
- Israel confirms Qatar’s announcement, says Gazans can now return home from 7 a.m. Monday
DOHA/JERUSALEM/GAZA CITY: Mediator Qatar announced early Monday that an agreement has been reached to release an Israeli civilian hostage and allow Palestinians to return to northern Gaza, easing the first major crisis of the fragile ceasefire between Israel and Hamas.
Qatar’s statement said Hamas will hand over the civilian hostage, Arbel Yehoud, along with two other hostages before Friday. And on Monday, Israeli authorities will allow Palestinians to return to northern Gaza.
The office of Israeli Prime Minister Benjamin Netanyahu in a statement said the hostage release — which will include soldier Agam Berger — will take place on Thursday, and confirmed that Palestinians can move north on Monday. Israel’s military said people can start crossing on foot at 7 a.m.
Under the ceasefire deal, Israel on Saturday was to begin allowing Palestinians to return to their homes in northern Gaza. But Israel put that on hold because of Yehoud, who Israel said should have been released on Saturday. Hamas accused Israel of violating the agreement.
Netanyahu's office said that another six hostages would be released in the coming week, after talks with Hamas. Three would be released on Thursday and another three on Saturday, said a statement from his office.
The breakthrough preserves a fragile ceasefire in the Israel-Hamas war, which has devastated the Gaza Strip and displaced nearly all its residents, paving the way for more hostage-prisoner swaps under a deal aimed at ending the more than 15-month conflict.
Israel had been preventing vast crowds of Palestinians from using a coastal road to return to northern Gaza, accusing Hamas of violating the truce agreement by failing to release civilian women hostages.
“Hamas has backtracked and will carry out an additional phase of releasing hostages this Thursday,” Netanyahu’s office said in a statement.
Trump’s plan meets mixed reactions
Palestinian leaders meanwhile slammed a plan floated by US President Donald Trump to “clean out” Gaza, vowing to resist any effort to forcibly displace residents of the war-battered territory.
Trump said Gaza had become a “demolition site,” adding he had spoken to Jordan’s King Abdullah II about moving Palestinians out.
“I’d like Egypt to take people. And I’d like Jordan to take people,” Trump told reporters.
Palestinian leader Mahmud Abbas, who is based in the Israeli-occupied West Bank, “expressed strong rejection and condemnation of any projects” aimed at displacing Palestinians from Gaza, his office said.
Bassem Naim, a member of Hamas’s political bureau, told AFP that Palestinians would “foil such projects,” as they have done to similar plans “for displacement and alternative homelands over the decades.”
Islamic Jihad, which has fought alongside Hamas in Gaza, called Trump’s idea “deplorable.”
For Palestinians, any attempt to move them from Gaza would evoke dark memories of what the Arab world calls the “Nakba,” or catastrophe — the mass displacement of Palestinians during Israel’s creation in 1948.
“We say to Trump and the whole world: we will not leave Palestine or Gaza, no matter what happens,” said displaced Gaza resident Rashad Al-Naji.
Trump floated the idea to reporters Saturday aboard Air Force One: “You’re talking about probably a million and half people, and we just clean out that whole thing.”
Moving Gaza’s roughly 2.4 million inhabitants could be done “temporarily or could be long term,” he said.
Israel’s far-right Finance Minister Bezalel Smotrich — who opposed the truce deal and has voiced support for re-establishing Israeli settlements in Gaza — called Trump’s suggestion of “a great idea.”
Tantamount to ‘ethnic cleansing’
The Arab League rejected the idea, warning against “attempts to uproot the Palestinian people from their land.”
“The forced displacement and eviction of people from their land can only be called ethnic cleansing,” the league said in a statement.
Jordanian Foreign Minister Ayman Safadi said “our rejection of the displacement of Palestinians is firm and will not change. Jordan is for Jordanians and Palestine is for Palestinians.”
Egypt’s foreign ministry said it rejected any infringement of Palestinians’ “inalienable rights.”
In Gaza, cars and carts loaded with belongings jammed a road near the Netzarim Corridor that Israel has blocked, preventing the expected return of hundreds of thousands of people to northern Gaza.
Israel had said it would prevent Palestinians’ passage until the release of Arbel Yehud, a civilian woman hostage. She is among those slated for return on Thursday, according to Netanyahu’s office.
Hamas said that blocking returns to the north also amounted to a truce violation, adding it had provided “all the necessary guarantees” for Yehud’s release.
Israeli army spokesman Avichay Adraee said Monday that residents would be allowed to return on foot starting at 07 a.m. (0500 GMT) and by car at 9 a.m.
Staggered releases
During the first phase of the Gaza truce, 33 hostages are supposed to be freed in staggered releases over six weeks in exchange for around 1,900 Palestinians held in Israeli jails.
The most recent swap saw four Israeli women hostages, all soldiers, and 200 prisoners, nearly all Palestinian, released Saturday — the second such exchange during the fragile truce entering its second week.
Dani Miran, whose hostage son Omri is not slated for release during the first phase, demonstrated outside Netanyahu’s office in Jerusalem on Sunday.
“We want the agreement to continue and for them to bring our children back as quickly as possible — and all at once,” he said.
The truce has brought a surge of food, fuel, medicines and other aid into rubble-strewn Gaza, but the UN says “the humanitarian situation remains dire.”
Of the 251 hostages seized during Hamas’s October 7, 2023 attack that ignited the war, 87 remain in Gaza, including 34 the military says are dead.
The Hamas attack resulted in the deaths of 1,210 people, mostly civilians, according to an AFP tally based on official Israeli figures.
Israel’s retaliatory offensive has killed at least 47,306 people in Gaza, the majority civilians, according to figures from the Hamas-run territory’s health ministry that the United Nations considers reliable.
Bittersweet return for Syrians with killed, missing relatives
- “I thought that once I got to Syria, everything would be better, but in reality everything here is so very painful,” says Wafa Mustafa, whose father Ali was among the tens of thousands killed or missing in Syria’s notorious prison system
DAMASCUS: Wafa Mustafa had long dreamed of returning to Syria but the absence of her father tarnished her homecoming more than a decade after he disappeared in Bashar Assad’s jails.
Her father Ali, an activist, is among the tens of thousands killed or missing in Syria’s notorious prison system, and whose relatives have flocked home in search of answers after Assad’s toppling last month by Islamist-led rebels.
“From December 8 until today, I have not felt any joy,” said Mustafa, 35, who returned from Berlin.
“I thought that once I got to Syria, everything would be better, but in reality everything here is so very painful,” she said. “I walk down the street and remember that I had passed by that same corner with my dad” years before.
Since reaching Damascus she has scoured defunct security service branches, prisons, morgues and hospitals, hoping to glean any information about her long-lost father.
“You can see the fatigue on people’s faces” everywhere, said Mustafa, who works as a communications manager for the Syria Campaign, a rights group.
In 2021, she was invited to testify at the United Nations about the fate of Syria’s disappeared.
The rebels who toppled Assad freed thousands of detainees nearly 14 years into a civil war that killed more than 500,000 people and displaced millions.
Mustafa returned to Branch 215, one of Syria’s most notorious prisons run by military intelligence, where she herself had been detained simply for participating in pro-democracy protests in 2011.
She found documents there mentioning her father. “That’s already a start,” Mustafa said.
Now, she “wants the truth” and plans to continue searching for answers in Syria.
“I only dream of a grave, of having a place to go to in the morning to talk to my father,” she said. “Graves have become our biggest dream.”
In Damascus, Mustafa took part in a protest demanding justice for the disappeared and answers about their fate.
Youssef Sammawi, 29, was there too. He held up a picture of his cousin, whose arrest and beating in 2012 prompted Sammawi to flee for Germany.
A few years later, he identified his cousin’s corpse among the 55,000 images by a former military photographer codenamed “Caesar,” who defected and made the images public.
The photos taken between 2011 and 2013, authenticated by experts, show thousands of bodies tortured and starved to death in Syrian prisons.
“The joy I felt gave way to pain when I returned home, without being able to see my cousin,” Sammawi said.
He said his uncle had also been arrested and then executed after he went to see his son in the hospital.
“When I returned, it was the first time I truly realized that they were no longer there,” he said with sadness in his voice.
“My relatives had gotten used to their absence, but not me,” he added. “We demand that justice be served, to alleviate our suffering.”
While Assad’s fall allowed many to end their exile and seek answers, others are hesitant.
Fadwa Mahmoud, 70, told AFP she has had no news of her son and her husband, both opponents of the Assad government arrested upon arrival at Damascus airport in 2012.
She fled to Germany a year later and co-founded the Families For Freedom human rights group.
She said she has no plans to return to Syria just yet.
“No one really knows what might happen, so I prefer to stay cautious,” she said.
Mahmoud said she was disappointed that Syria’s new authorities, who pledged justice for victims of atrocities under Assad’s rule, “are not yet taking these cases seriously.”
She said Syria’s new leader Ahmed Al-Sharaa “has yet to do anything for missing Syrians,” yet “met Austin Tice’s mother two hours” after she arrived in the Syrian capital.
Tice is an American journalist missing in Syria since 2012.
Sharaa “did not respond” to requests from relatives of missing Syrians to meet him, Mahmoud said.
“The revolution would not have succeeded without the sacrifices of our detainees,” she said.
