Lebanese currency collapsing at record speed

Lebanese pound banknotes are seen at a currency exchange shop in Beirut, Lebanon. (REUTERS)
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Updated 21 March 2023
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Lebanese currency collapsing at record speed

  • Exchange rate has dropped around 300 percent since the beginning of the year

BEIRUT: The Lebanese pound depreciated at record speed, reaching 143,000 pounds to the US dollar on Tuesday afternoon, after dropping 20,000 pounds in under 24 hours.

Hundreds of people took to the streets to protest in Beirut, Tripoli and the Bekaa Valley, blocking roads and burning tires.

Several gas stations, supermarkets, and pharmacies suspended their services for the day while protesters forcibly shut down shops in the capital’s popular Mazraa Corniche area.

One protester near the Jamal Abdel Nasser Mosque in Beirut spoke out against the country’s politicians and people manipulating the exchange rate on the black market, asking “is this how they want us to welcome the month of Ramadan? Where are the MPs? What are they doing about this? What did we do to deserve their corruption?”

The angry protests came a day after Lebanon was ranked the second-least happy country in the world behind Afghanistan,in the World Happiness Report 2023.

The report, issued annually under the supervision of the UN, includes six main factors: GDP per capita, social support, healthy life expectancy, freedom, generosity, and low corruption.

The Lebanese pound’s exchange rate to the dollar has so far dropped by about 300 percent since the beginning of this year.

The latest drop resulted in unprecedented chaos in the markets, in a country where all products are priced in dollars, purchasing power is degrading and the average public sector monthly wage now equates to around $150 a month.

Economic analyst Mounir Younes said: “The exchange rate dropped 30 percent in just 10 days. There is no way to curb this collapse without curbing imports since the gap between the money allocated for imports and the quantities available in the local market has become deep in light of the Central Bank’s reluctance to back it up using its depleting reserves.”

As the local currency continued to drop on the black markets, while banks resumed their strike and political stalemate prevailed, citizens have been randomly taking to the streets to protest anything and everything.

A security source feared that the situation could implode at any moment.

Fuel distributors decided to give the state until Wednesday morning to make a decision to dollarize fuel prices. Their representative, Fadi Abu Shakra, told Arab News: “The distributor or station owner cannot bear the difference between the price list set by the Ministry of Energy — even though it is adjusted over three times a day — and the ever-changing exchange rate. If no decision is taken, we will dollarize our prices by ourselves.”

On Tuesday, the price of a 20-liter canister of gasoline reached 2,390,000 Lebanese pounds, an increase of 168,000 pounds over Monday’s price.

The Lebanese Pharmacists Syndicate decided to close pharmacies since pharmaceutical companies and warehouses stopped delivering medicines to them more than two weeks ago.

“We are in a comprehensive collapse. The health sector is affected the most, which directly affects patients,” said the head of the Pharmacists Syndicate, Joe Salloum.

MP Michel Daher accused the Banque du Liban of intervening in the market whenever it wants to cover the state’s expenses. “The people are hungry and are no longer able to bear the disastrous results of financing your patchwork approach.”

MP Ashraf Rifi said: “We are quickly slipping into more dangerous stages, while the mafia, the alliance of arms and corruption, is reassured of the illusion that the Lebanese have been domesticated. The volcano will eventually erupt. We can no longer afford to keep corrupt in charge; statemen must be chosen to bear the responsibility of the rescue plan.”

The head of the General Labor Union, Beshara Al-Asmar, stated: “We need to organize a comprehensive strike since officials have shown no intention to address the insane drop in the exchange rate and the resulting price hikes of commodities, foodstuffs, fuel, etc.”

Al-Asmar added: “The situation is unbearable. Officials must open up to each other. The entire region, including Tukiye and Iran, has turned into a region of dialogue, openness, and political solutions.”

Later on Tuesday, the BdL announced that it will be conducting an “open and continuous process to buy Lebanese banknotes and sell dollars for cash based on Sayrafa’s exchange rate,” which was set at 90,000 pounds to the dollar as of Tuesday.

Following the central bank’s announcement, the local currency regained some value on the black market as the exchange rate rose back to 100,000 pounds to the dollar, settling at 116,000 pounds to the dollar as of 5:30 p.m. local time.

 

 


Qatar PM meets Hamas delegation for Gaza ceasefire talks

Updated 10 sec ago
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Qatar PM meets Hamas delegation for Gaza ceasefire talks

DOHA: Qatar’s prime minister met a Hamas delegation in Doha on Saturday to discuss a “clear and comprehensive” ceasefire deal to end the war in Gaza, a statement said.
Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani held talks with a Hamas team led by senior official Khalil Al-Hayya, the foreign ministry statement said.
It is unusual for Sheikh Mohammed, who is also Qatar’s foreign minister, to be publicly involved in the mediation process that has appeared deadlocked for months.
“During the meeting, the latest developments in the Gaza ceasefire negotiations were reviewed, and ways to advance the process were discussed to ensure a clear and comprehensive agreement that brings an end to the ongoing war in the region,” the statement said.
Earlier this month, the sheikh expressed optimism that “momentum” was returning to the talks following Donald Trump’s election victory in the United States.
“We have sensed, after the election, that the momentum is coming back,” he said at the Doha Forum political conference.
The incoming Trump administration had given “a lot of encouragement in order to achieve a deal, even before the president comes to the office,” the premier added.
The Gulf emirate, along with the United States and Egypt, has been involved in months of unsuccessful negotiations for a Gaza truce and hostage release.
In November, Doha announced it had put its mediation on hold, saying that it would resume when Hamas and Israel showed “willingness and seriousness.”
But Doha then hosted indirect negotiations this month, with Hamas and Israel both reporting progress before again accusing each other of throwing up roadblocks.

Israel destroys Hezbollah tunnel, met with calls for popular resistance

Updated 28 December 2024
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Israel destroys Hezbollah tunnel, met with calls for popular resistance

  • Secret crossing routes link Damascus to Beirut
  • Sixty-seven Syrians deported

BEIRUT: The Israeli military announced its “success in dismantling an underground tunnel in southern Lebanon, measuring 100 meters in length, leading to a hideout belonging to the Radwan Forces of Hezbollah.”

Israeli forces, which have been infiltrating the border area in southern Lebanon since Oct. 1 continue to operate in the country despite the ceasefire agreement, with Saturday marking the beginning of the second month of the specified withdrawal deadline.

While the Israeli military justified its hostile activities in southern Lebanon as “removing threats in line with the ceasefire understandings between Israel and Lebanon,” it said that “the 300th Brigade, in cooperation with the 146th Division and engineering forces, successfully dismantled the mentioned tunnel.”

It added that “the specialized Yahalom Unit, dealing with explosives, secured and inspected the tunnel for threats. During the operations, large quantities of weapons were discovered inside the tunnel, including rifles, machine guns, anti-tank missiles, as well as advanced surveillance systems. All the equipment was confiscated and destroyed, including the tunnel itself.”

The statement mentioned “the discovery of a stockpile of anti-tank missiles and heavy machine-gun positions directed toward Israeli sites near the tunnel.” It also noted that “the tunnel’s path led to a Hezbollah command center containing rocket launch platforms previously used against Israel during the war, as well as large quantities of explosives.”

While the Israeli military continues to encroach upon the border area and prevents residents from accessing the area until further notice in an attempt to establish a buffer zone, anonymous statements circulated on social media calling for “popular resistance.”

Activists supportive of Hezbollah criticized the Lebanese Army and state for not responding to the Israeli incursions into towns and villages and demanded that Hezbollah “arm and train us so we can resist the Israeli occupier and liberate our land with our own hands.”

A statement signed by a group calling itself Youth of the Border Villages declared: “We find ourselves compelled to defend our villages and properties with whatever weapons are available, and we will not accept the continuation of this barbaric, systematic, and brutal aggression by the enemy. We will be forced to launch a southern popular resistance to confront this assault.”

Another statement signed by a group called Youth of Beirut’s Southern Suburb called on “the Islamic Resistance in Lebanon, represented by Hezbollah, to fight in defense of the land, the people, and honor.”

The statement referred to the Israeli violations that occurred after the ceasefire agreement was announced and stated that “given what has happened, after consulting with the Lebanese state and receiving no response, and consulting UNIFIL without receiving any answer, we hereby legally, morally, and ethically authorize Hezbollah and demand it to arm and train us so we can resist the Israeli occupier and liberate our land with our own hands.”

However, despite these anonymous calls, the caretaker government, in which Hezbollah is a key partner, continues to affirm its commitment to the “ceasefire agreement and its insistence on implementing Resolution 1701 as a means to stop hostilities against Lebanon.”

Meanwhile, Hezbollah continues to hold funerals for members killed in southern Lebanon.

During the funeral of one in the city of Hermel on Saturday, Hezbollah MP Ihab Hamadeh condemned “the repeated Israeli violations of the ceasefire agreement.” He held “the Lebanese government and the committee overseeing the implementation of the ceasefire accountable,” asserting that “resistance remains the most effective option to confront the Israeli enemy.”

On the other side of the border, the Lebanese General Security deported 67 Syrians who had entered Lebanese territory illegally through Al-Arida border crossing with Syria in the north.

In a statement, the Internal Security Forces announced that they had “intercepted a bus carrying the Syrians in the Jbeil area. Upon inspection, 67 individuals were found on board, including men, women, and children, one of whom was an infant no older than 40 days. They had been smuggled into Lebanon from Syria to be transported to Beirut.”

Meanwhile, media reports cited a Lebanese security source stating that “Rifaat Assad, uncle of the ousted Syrian president Bashar Assad, departed Beirut Rafic Hariri International Airport for Dubai on Tuesday afternoon, accompanied by two individuals on a private jet.”

On Friday, Lebanese General Security detained Rifaat Assad’s granddaughter and her mother at the airport after discovering both were carrying passports that had expired.

Numerous former Assad regime officials have left the country via Lebanon since the fall of the regime. Among those was Bouthaina Shaaban, a senior adviser to the deposed leadership , according to Interior Minister Bassam Mawlawi.

However, security services arrested a former officer from the 4th Division, belonging to Syria’s Al-Kreidi family, while he was en route to Beirut with $170,000 in his possession.

Meanwhile, security forces are still investigating whether the former head of Syrian Air Force Intelligence, Jamil Hassan — accused by US authorities of committing war crimes during Assad’s rule — is currently in Lebanon.

The Lebanese judiciary received an Interpol request for his arrest, and Prime Minister Najib Mikati affirmed at the time that Lebanon “will cooperate with Interpol’s request.”

 


Arab Parliament describes Israeli assault on Gaza hospital as ‘war crime’

Updated 28 December 2024
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Arab Parliament describes Israeli assault on Gaza hospital as ‘war crime’

  • Attack is latest in ‘ongoing series of atrocities’ against Palestinians, it says
  • Body calls for end to ‘international silence,’ as crisis worsens

LONDON: The Arab Parliament has denounced Israel’s burning of Kamal Adwan Hospital in the northern Gaza Strip on Friday as “a new war crime,” following reports that patients, injured civilians and medical staff were forced to evacuate under perilous conditions.

According to witnesses, Israeli troops stormed the hospital, setting large sections ablaze, detained its director and ordered the evacuation of hundreds to the nearby Indonesian Hospital.

The displaced individuals were left in dire conditions, lacking food, water, electricity and medical supplies, witnesses said.

The assault rendered the facility “useless,” worsening Gaza’s already severe health crisis, the Palestinian territory’s health officials said on Saturday.

In a statement on Saturday, the Arab Parliament described the incident as “a flagrant violation of international humanitarian law” and called for those responsible to be brought before international courts.

“This crime is added to an ongoing series of atrocities by the occupation forces against Palestinian civilians,” it said.

The Arab Parliament accused Israel of systematically targeting Gaza’s already fragile health infrastructure and said the international community’s silence had emboldened these actions.

“The persistence on the total and complete destruction of the dilapidated health system in the Gaza Strip is a direct result of international silence on its crimes,” it said.

The statement urged the UN Security Council and broader international community to take action, calling for an immediate ceasefire, accountability for alleged war crimes and measures to prevent further humanitarian catastrophes in Gaza.


Babies freezing to death due to cold weather and lack of shelter in Gaza, says UNRWA chief

Updated 28 December 2024
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Babies freezing to death due to cold weather and lack of shelter in Gaza, says UNRWA chief

  • Philippe Lazzarini issued stark warning about dire humanitarian situation in Gaza

LONDON: Freezing temperatures and a lack of basic supplies in Gaza are threatening lives amid Israel’s ongoing assault on the enclave, a United Nations official warned on Saturday.

Philippe Lazzarini, commissioner-general of the UN Relief and Works Agency for Palestine Refugees in the Near East, issued a stark warning about the dire humanitarian situation in Gaza, where he said babies and infants were succumbing to the cold due to the region’s harsh winter weather and inadequate shelter.

“Meanwhile, blankets, mattresses, and other winter supplies have been stuck in the region for months waiting for approval to get into Gaza,” Lazzarini wrote on X.

He also emphasized the urgent need for the immediate provision of essential winter supplies and reiterated calls for a ceasefire to allow humanitarian aid to reach those in need.

The World Food Program has also highlighted the worsening hunger crisis in Gaza. The agency reported that it has only managed to deliver about a third of the food required to support the population.

“Hunger is everywhere in Gaza,” the WFP stated in a post on X. The agency echoed calls for the restoration of law and order, safe and sustained humanitarian access, and an immediate ceasefire to alleviate the suffering.

UN agencies continue to urge swift international action to address the urgent needs of Gaza’s vulnerable population.


Egypt completes trial run of new Suez Canal channel extension

Updated 28 December 2024
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Egypt completes trial run of new Suez Canal channel extension

  • Suez Canal Authority says two ships passed through a new stretch of the canal’s two-way section
  • Revenue from the waterway has plunged since Yemen’s Houthi militants began attacking vessels in the Red Sea

CAIRO: Egypt said on Saturday it had successfully tested a new 10km channel near the southern end of the Suez Canal, even as its revenue from the waterway has plunged since Yemen’s Houthi militants began attacking vessels in the Red Sea.
The Suez Canal Authority said in a statement that during a trial run two ships passed through a new stretch of the canal’s two-way section without incident.
Following the 2021 grounding of the container ship Ever Given that blocked the vital waterway for six days, Egypt accelerated plans to extend the second channel in the southern reaches of the canal and widen the existing channel.
Its revenue from the waterway, the gateway to the shortest route between Europe and Asia, has nevertheless tumbled since Yemen’s Houthi militants began attacking ships in the Red Sea in November 2023 in what they say is solidarity with Palestinian militants in Gaza.
Egyptian President Abdel Fattah El-Sisi said on Thursday that due to “regional challenges,” the country had lost approximately $7 billion in Suez Canal revenue in 2024, marking more than a 60 percent drop from 2023.
According to the Suez Canal Authority, the latest expansion extends the total length of the canal’s two-way section to 82 km from a previous 72 km. The canal is 193 km long in total.
“This expansion will boost the canal’s capacity by an additional 6 to 8 ships daily and enhance its ability to handle potential emergencies,” the Suez Canal Authority said in its statement.
Earlier this year, Egypt said that it was considering an additional expansion project separate to the 10 km channel extension.