BEIRUT: Parliament speaker Nabih Berri urged Lebanon’s government, central bank and commercial banks on Wednesday to declare a “financial state of emergency” and review all steps to protect the collapsing currency.
He also said Lebanon would not get a penny from the International Monetary Fund (IMF) or any donor state unless it carries out reforms, at the forefront of them accelerating an overhaul of its loss-making electricity sector.
The Lebanese pound has lost about 75% of its value since October, when long-brewing economic troubles mushroomed into a financial crisis regarded ass the biggest threat to Lebanon since its 1975-1990 civil war.
The pound, officially pegged at 1,507.5 to the dollar since 1997, traded at 6,300/6,500 on the parallel market Wednesday, a market participant said, weaker than levels of 6,000/6,200 cited by market participants on Tuesday.
With dollars scarce, the financial meltdown has frozen savers out of their deposits and forced up prices in the import-dependent economy.
“It is unacceptable that Lebanese be made hostages of black markets in currency, food, medicine and fuel,” Berri said during an emergency meeting of the Amal Movement, the Shiite Muslim party he leads.
Donor states that have provided Lebanon with aid in the past have said it will not receive any until it undertakes reforms to fix the state corruption and waste that are at the root of the crisis. Lebanon began talks with the IMF in May.
“Any Lebanese official will be mistaken if he believes the IMF or any state or donor party can give us one penny of aid if we do not implement reforms,” Berri said.
“Frankly, the world and international community believes Lebanon is a bottomless basket, and before this bottom is closed there will be no aid.”
As Lebanese pound crumbles, Berri urges ‘financial state of emergency’
https://arab.news/pwx34
As Lebanese pound crumbles, Berri urges ‘financial state of emergency’
- Parliament speaker Nabih Berri called for declaring a “financial state of emergency”
G7 countries to release oil reserves as IEA agrees to largest ever market intervention
- IEA recommends release of 400 million barrels
RIYADH: Germany, Japan and Austria will release part of their oil reserves after the International Energy Agency recommended the release of 400 million barrels of oil from stockpiles, the largest such move in IEA history.
In a statement, IEA Executive Director Fatih Birol said the flow of oil, gas and other commodities through the Strait of Hormuz have all but stopped, leading global energy supply to fall by around 20 percent.
Ahead of the confirmation of the move, a larger intervention than the 182.7 million barrels that were released in 2022 by in response to Russia’s invasion of Ukraine, several countries began setting out plans to bring their reserves into play as countries grapple with soaring crude prices amid the US-Israeli war with Iran.
Birol said: “I can now announce that IEA countries have decided to launch the largest ever release of emergency oil stocks in our agency's history.
“IEA countries will be making 400 million barrels of oil available to the market to offset the supply lost through the effective closure of the strait.
“This is a major action aiming to alleviate the immediate impacts of the disruption in markets.”
Germany’s Economy Minister Katherina Reiche confirmed on Wednesday her government plans to limit petrol price increases at filling stations to once a day and to introduce more stringent antitrust regulation of the sector.
She did not give an exact timing for those measures, but added that the US and Japan would be the largest contributors to the release of the oil reserves.
The US has not confirmed it would do so, but its Interior Secretary Doug Burgum told Fox News on Wednesday that “these are the kinds of moments that these reserves are used for.”
The announcements did not stop oil prices rising, with Brent crude up 3.26 percent to $90.66 a barrel at 4:29 p.m Saudi time, and West Texas Intermediate up 3.12 percent to $86.05. Both were some way below the $119 a barrel seen earlier in the week.
“The situation regarding oil supplies is tense, as the Strait of Hormuz is currently virtually impassable,” Germany’s Reiche said.
“We will comply with this request and contribute our share, because Germany stands behind the IEA’s most important principle: mutual solidarity,” Reiche said about the IEA’s request.
According to a statement by Reiche’s ministry, Germany will contribute 2.64 million tonnes of oil. This corresponds to 19.51 million barrels.
Reiche stressed there was no supply shortage in the country, which has a legally mandated reserve of oil and oil products intended to cover 90 days’ demand.
Austrian Economy Minister Wolfgang Hattmannsdorfer said his country was releasing part of the emergency oil reserve and extending the national strategic gas reserve, adding: “One thing is clear: in a crisis, there must be no crisis winners at the expense of commuters and businesses.”
Acting ahead of the IEA move, G7 member Japan announced plans to release 15 days' worth of private-sector oil reserves and one month's worth of state oil reserves.
“Rather than wait for formal IEA approval of a coordinated international reserve release, Japan will act first to ease global energy market supply and demand, releasing reserves as early as the 16th of this month,” Prime Minister Sanae Takaichi said in a broadcast statement.
Following a meeting with the IEA on Wednesday, G7 energy ministers said: “In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves.”
All IEA member countries are required to keep 90 days’ worth of their nation’s oil use in reserve in case of global disruption.
