Lebanon’s financial chaos spikes as US Caesar Act looms
Lebanon’s financial chaos spikes as US Caesar Act looms/node/1690926/middle-east
Lebanon’s financial chaos spikes as US Caesar Act looms
Protesters shout anti-government slogans during a demonstration in Beirut. Protesters have been calling for the resignation of the government as the country sinks deeper into economic distress. (AP)
Lebanon’s financial chaos spikes as US Caesar Act looms
The act comes into force on Wednesday and gives the US ‘powerful tools to hold the Syrian government accountable for its atrocities’
Updated 20 June 2020
NAJIA HOUSSARI
BEIRUT: Lebanon saw a spike in economic and financial chaos on the eve of the US Caesar Act taking effect, with people flocking to buy the US dollar, the threat of industrial action and job losses at a prominent university.
The act comes into force on Wednesday and gives the US “powerful tools to hold the Syrian government accountable for its atrocities” according to an unofficial Arabic translation of the act’s text. It says that no foreign company should “engage with or enrich” Damascus and imposes sanctions on any foreign person who “knowingly provides important financial, material, or technological support to the Syrian government or to any high-ranking political figure in the regime, or knowingly engages in important transactions with the Syrian government or any high-ranking political figure in the Syrian government.”
Lebanon’s Central Bank is seeking to limit any attempts to buy the dollar in Lebanon with the aim of transferring it to Syria, especially in light of the currency’s scarcity in Lebanon.
On Tuesday people flocked to buy the dollar at the rate set by the Money Exchange Syndicate — LBP3,900 pounds for one dollar — after the central bank decided to pump about $6 million a day from its reserves in the financial market to curb the freefall of the Lebanese pound.
The money-changers entitled to buy dollars from the Central Bank asked people to show proof of identity as well as documents explaining the reason for buying the currency. Low ceilings have been set for the amounts that people can obtain and that amount may not not exceed $200. The dollar exchange rate on the black market was LBP4,800, with people selling what they had bought from licensed money-changers for a higher price.
The General Directorate of Public Security confirmed that it had started “working in the joint special operations room to monitor speculation on the lira against the dollar.” Telephone numbers have been issued to report violators.
Former Lebanese Prime Minister Fouad Siniora criticized the government’s request for the Central Bank to intervene in the country’s currency woes while “refraining from carrying out the required reforms.”
“The depletion of foreign exchange reserves will only exacerbate crises and escalate the situation,” he warned.
The currency chaos was accompanied by a warning from the Mobile Operators’ Syndicate that its employees would strike after the expiry of a deadline for authorities to resolve the problem of May salaries. The strike would disrupt voice calls, internet and messaging services available on social media, the syndicate said in a statement. The strike will affect more than four million mobile service subscribers.
The country’s financial crisis has also forced the president of the American University of Beirut (AUB) to tell staff he had to cut the institution’s headcount by 25 percent. The AUB has a total of 6,500 employees and the losses are expected to extend to staff in managerial positions.
Saroj Kumar Jha, the World Bank’s director for the Levant region, urged the government to secure a social safety net program for the poor and vulnerable groups in Lebanon established in cooperation with the World Bank given the “difficult circumstances that are ravaging Lebanon.”
Great expectations: Yemenis look forward to outcomes of Riyadh dialogue
Southern factions look to Saudi-hosted talks to defuse tensions after December’s violent escalation
Analysts say Riyadh dialogue could help reset the southern cause — but only if militias are excluded
Updated 07 January 2026
Mohammed Al-Sulami
RIYADH: Last December marked a troubled end to the year in Yemen, particularly in its southern and eastern governorates. While much of the world marked the season with hopes for peace and stability, developments on the ground took a sharply different turn.
The Southern Transitional Council (STC), led by Aidarous Al-Zubaidi, moved to seize control of state institutions and military camps, defying expectations in Hadramout and Al-Mahra and mounting a direct challenge to the internationally recognized government.
These actions, carried out through armed force and supported by external actors, led to casualties and an escalation of tensions in both governorates.
In response, Yemen’s political leadership appealed to the Saudi-led coalition to contain the situation, called for the withdrawal of Emirati forces, and initiated operations to reassert control over military headquarters in Hadramout and Al-Mahra.
Subsequently, Rashad Mohammed Al-Alimi, chairman of the Presidential Leadership Council, asked Saudi Arabia to host a conference in Riyadh, bringing together all southern factions to discuss solutions — a request accepted by the Saudi leadership.
Supporters of the UAE-backed separatist Southern Transitional Council (STC) wave flags of the STC, during a rally in Aden, Yemen, January 1, 2026. (Reuters)
The initiative comes amid the Kingdom’s affirmation of the legitimacy of the southern cause, coupled with its clear rejection of any solution imposed by force.
Arab News surveyed the views of several Yemeni politicians and analysts on their expectations for the conference, convened at a critical and highly sensitive juncture, and on the key issues anticipated to dominate the dialogue.
Among them was Salah Batis, a member of the Yemeni Shura Council, a member of the Preparatory Committee for the Unified Council of the Eastern Governorates, and a prominent figure in Hadramout.
“We extend our sincere gratitude to our brothers in the Kingdom of Saudi Arabia — both leadership and people — for their steadfast support, assistance, and courageous stand alongside the people of Hadramout and the eastern governorates in particular, and Yemen as a whole,” Batis told Arab News.
“Without this support, and without the role of the Saudi Air Force, this victory would not have been achieved, security would not have been restored, and this militia would not have been removed from these sensitive areas, especially Hadramout and the eastern governorates.
President Dr. Rashad Mohammed Al-Alimi, Chairman of the Presidential Leadership Council, received on Tuesday at his residence in Riyadh the Senior Adviser to the US President for Arab and African Affairs, Massad Boulos, in the presence of the US Ambassador to Yemen Steven H. Fagin. (Social media)
“We also express our appreciation to the political leadership, represented by the chairman of the Presidential Leadership Council, Dr. Rashad Al-Alimi, and to the governor of Hadramout and commander of the Homeland Shield Forces, Salem Al-Khanbashi.
“Our gratitude further extends to the heroes of the Homeland Shield Forces, the armed forces, and the security forces who participated in the operation to take control of the camps. It was a swift and decisive operation, carried out at minimal cost, praise be to God.”
However, Batis said he opposes the inclusion of the STC in the upcoming Riyadh conference, citing its involvement in the killing and terrorizing of civilians in Hadramout and Al-Mahra.
He described the call for dialogue as “a positive step toward preserving the southern cause, which the STC had sought to hijack and undermine, nearly causing severe damage had it not been for swift and decisive intervention.”
Abdullah Ali Fadhel Al-Saadi (second from right at table), Permanent Representative of Yemen to the United Nations, speaks at the Security Council meeting on the situation in the Middle East. (Photo: UN)
Batis said the southern cause must represent all southerners without exception, and that no single party should monopolize it or claim exclusive representation. He said the STC had already harmed the cause by using armed violence to advance its agenda, resulting in killings.
For this reason, he said, the people of Hadramout — where many of these violations occurred — have demanded, and continue to demand, accountability for those responsible and their exclusion from the dialogue.
He accused the STC of mobilizing armed forces, invading governorates, killing tribesmen, attacking villages and civilians, storming and looting state camps, and destroying public institutions, including airports, ports, oil facilities, and government offices in Seiyun, Mukalla, and other locations.
Batis said the STC and its leadership bear full responsibility, arguing they had led and directed the armed groups toward Hadramout under the banner of southern forces.
This photo taken on January 3, 2026 shows Saudi-backed forces that took control of the Second Military Region Command on the outskirts of Mukalla, the capital of Hadramawt, where the UAE-backed secessionist Southern Transitional Council (STC) recently launched an offensive to seize the resource-rich province. (AFP)
He questioned how the people of Hadramout and the eastern governorates could accept belonging to such a region after what had occurred, noting that these forces operated under a declared leadership and a self-proclaimed supreme commander.
Batis said local communities viewed them as invading forces that killed civilians, shed blood, attacked state institutions, and seized military camps.
He added that, were it not for the decisive intervention of allied forces and local authorities — leading to the return of the camps, the repair of the damage, and the withdrawal of these militias to their original positions — the consequences would have been far more severe.
“I believe this dialogue and conference must have a clear and firm framework: no group that possesses weapons, militias, or armed forces should take part,” Batis said.
People ride motorbikes on a street in Sanaa, Yemen February 5, 2021. (Reuters)
“Arms must be exclusively in the hands of the state, under the authority of the ministries of defense and interior, and sovereignty must rest solely with the state — not with parties, factions, or individuals.”
Batis warned against repeating what he described as the mistake of 2013, when the Houthi group was allowed to participate in the National Dialogue Conference while still armed and expanding its territorial control.
He recalled that by January 2014 the Houthis had seized Amran Governorate and laid siege to Sanaa, halting the drafting of the federal constitution and forcing meetings to be held at the Presidential Palace.
Batis noted that he was serving at the time as vice president of the National Authority tasked with monitoring the implementation of the dialogue’s outcomes, before the Houthis later stormed the capital and plunged the country into a crisis that continues to this day.
Fighters recruited into the Houthis as part of a mobilization campaign they have initiated recently, ride atop an armored personnel carrier as they parade to show solidarity with Palestinians in the Gaza Strip, in Sanaa, Yemen August 24, 2024. (Reuters)
For his part, political analyst and activist Youssef Ismail Abdo said that any fair and equitable outcomes from the conference would help stabilize the south — particularly Hadramawt and the eastern governorates — fostering security, development, and stability, with positive implications for all of Yemen and the wider region.
Also speaking to Arab News, Dr. Nasser bin Habtour, secretary-general of the Shabwa National Council, said that “the south is home to multiple political projects, including secession and a federal state.
“The events of December demonstrated that not all southerners support secession, leaving the STC isolated in its unilateral move. In my opinion, all political options should be placed on the dialogue table so that southerners can discuss them and reach a unified vision.”
He argued that “secession is neither feasible nor appropriate at the present stage, given Yemen’s dire circumstances, with the Houthi militia controlling Sanaa and state institutions and posing a serious threat to Yemen and the wider region.”
Vehicles drive on a street, as Saudi and Omani delegations hold talks with Houthis, in Sanaa, Yemen April 10, 2023. (Reuters)
He stressed that “restoring the Yemeni state must come first, after which all political projects can be presented to the people, who should then decide the future form of the state.”
He added: “The meeting, to be held in Riyadh, came at the request of southern political and social figures and groups who convened after recognizing both their responsibility and the danger into which the STC had placed the southern cause.
“They contacted the chairman of the Presidential Leadership Council, urging him to ask the Kingdom to host a southern dialogue conference.” He noted that “this initiative was consistent with Saudi Arabia’s longstanding role in supporting Yemen.”
“The conference must focus on repairing the damage inflicted on the southern cause by the STC’s unilateral decisions and attempts to monopolize it, as well as restoring the issue to its proper course through a consensual vision shared by the people of the south.”
A drone view shows people attending a rally organized by Yemen's main separatist group, the Southern Transitional Council (STC), in Aden, Yemen December 21, 2025. (Reuters)
Regarding the expected outcomes of the comprehensive southern national dialogue, Habtour said: “The first priority is reaching consensus on a unified southern vision that reflects the aspirations of the people of the south.”
He added: “The southern issue must be situated within the broader national struggle to restore the state from the Houthi militia, as well as integrated into the negotiation process aimed at restoring security and stability in Yemen.”
He further stressed “the importance of defining the role of southerners in the upcoming phase, particularly within the framework of a future federal state and their contribution to nation-building and development.”
