Bank decision that caused depositors panic in Lebanon reversed

Protests erupted after a top court suspended a Central Bank decree that allowed the Lebanese to withdraw from dollar deposits at a rate two and a half times better than the fixed exchange rate. (AP)
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Updated 03 June 2021
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Bank decision that caused depositors panic in Lebanon reversed

  • Salameh reversed the decision less than 12 hours after banks started implementing the new circular issued by the state’s Shoura Council
  • Angry Lebanese took to the streets and destroyed ATMs across the country after they found themselves unable to make withdrawals

BEIRUT: Riad Salameh, the governor of Lebanon’s central bank, said on Thursday that depositors could withdraw money from their dollar deposits in Lebanese pounds at a rate two and half times better than the official one.

The decision reverses an earlier stance and comes a day after panicked depositors lined up outside ATMs to withdraw as much as possible before a suspension of the preferential rate took effect.

The pound, pegged for 30 years at 1,515 to the dollar, is now trading at nearly 13,000 pounds to the dollar, according to the Associated Press.

Salameh reversed the decision less than 12 hours after banks started implementing the new circular issued by the state’s Shoura Council.

On Wednesday night, angry Lebanese took to the streets and destroyed ATMs across the country after they found themselves unable to make withdrawals.

Stopping this service affects major and minor depositors, who rely on monthly limited access to their dollar deposits to be able to carry on with everyday life or to retrieve locked funds, even if it means withdrawing their money in pounds and at a very low rate.

On Thursday morning, President Michel Aoun met with Salameh and the head of the Shoura Council, Judge Fadi Elias. Following the meeting, Salameh said: “The decision reflected our great respect for the Shoura Council and the Lebanese judiciary.

“Judge Elias explained to us that there is a possibility not to implement the decision immediately, and if we submitted a review, this would give us time before implementation,” he added.

Economist Jassem Ajjaka told Arab News: “What is happening reflects the chaos resulting from the absence of a government.”

He said the Shoura Council’s decision “did not take into consideration the interests of depositors,” and added: “This does not mean that depositors should accept taking their deposits at the fixed rate of 3,900 pounds. Banks must develop a roadmap to give people their deposits in dollars.”

Several economists and politicians feel the chaos caused by “hasty and ill-conceived” bank and judicial decisions has been exacerbated by an unprecedented escalation in the conflict between Aoun and the prime minister-designate, Saad Hariri.

Those who have been closely watching the conflict expect it to end with a rift between them, as all mediation efforts have failed so far. The war of words between Hariri’s Future Movement and Aoun’s Free Patriotic Movement (FPM) has escalated into what journalists and pundits dubbed a “cancelation war” as the two sides swapped accusations and personal insults over the past 72 hours.

Lebanon has been without an elected government for 300 days, since the resignation of Hassan Diab’s government, which has carried on in a caretaker capacity. 

On Wednesday, Diab urged the Lebanese people to “remain patient in the face of the injustice they are facing,” and called on political parties to “make concessions to stop the country from continuing toward this frightening path.”

He appealed to Lebanon’s “brothers and friends” to rescue the country “before it is too late,” in the same week the World Bank said in a report that Lebanon was headed towards inevitable economic collapse.

The Maronite patriarchy reiterated on Thursday the need for a UN-sponsored international conference on Lebanon to implement the resolutions of the UN Security Council.

Patriarch Bechara Boutros Al-Rai announced on Wednesday from the presidential palace that the “insults are unacceptable” and suggested “the formation of a multipolar government, even if it means forming a government of politicians, similar to Fouad Chehab’s government (in the 1950s) only formed with four ministers, to rescue Lebanon from this hell.”

A statement recently issued by the palace also accused Hariri of usurping “the powers of the president” and “coming up with new rules for the Cabinet’s formation.”

The Future Movement, meanwhile, said the presidency was “now controlled by a bunch of advisers trying to undermine its status, and fill it up with propositions, ideas and statements that do not match its national role.”


King Abdullah II: Jordan won't become ‘theatre of war’ between Israel and Iran

Updated 2 min 23 sec ago
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King Abdullah II: Jordan won't become ‘theatre of war’ between Israel and Iran

  • King of Jordan reinforced the nation's commitment to upholding its security and sovereignty
  • He said Jordan's aim was to safeguard its own sovereignty rather than defend Israel

DUBAI: Jordanian King Abdullah II said Tuesday that his country must not become ‘the theatre of a regional war’ after Jordan intercepted multiple missiles and drones when Iran attacked Israel at the weekend. 

The king reinforced the nation's commitment to upholding its security and sovereignty above all other considerations. He stressed Jordan's aim was to safeguard its own sovereignty rather than defend Israel.

Last weekend, Jordan was among a group of nations that helped Israel shoot down missiles, rockets and attack drones launched by Iran and its allies at Israel.

Earlier on Tuesday, Jordan's Foreign Minister Ayman Safadi said the international community should stop Israeli Prime Minister Benjamin Netanyahu from "stealing" attention away from Gaza by escalating his confrontation with Iran.

In remarks during a press conference with his German counterpart in Berlin, Safadi said Iran had responded to the attack against its consulate and had announced that it did "did not want to escalate further".

"We are against escalating. Netanyahu wants to draw attention away from Gaza and focus on his confrontation with Iran," Safadi added.

Iran's weekend attack caused modest damage in Israel and wounded a 7-year-old girl. Most missiles and drones were shot down by Israel's Iron Dome defence system and with help from the US, Britain, France and Jordan.

Iran -- which labelled its attack an act of self-defence after a deadly Israeli strike on its Syria consulate -- warned Jordan it could be “the next target”, a military source was reported as saying by Iran's Fars news agency. 

(with agencies)


Israel’s old Lebanese allies grapple with new Hezbollah threat

Updated 16 April 2024
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Israel’s old Lebanese allies grapple with new Hezbollah threat

  • The South Lebanon Army was a mostly Christian militia recruited by Israel when it occupied south Lebanon in the 1980s and 1990s

The looming threat of a war between Israel and Hezbollah in Lebanon is reviving painful memories for former Lebanese militiamen and their families who fled to Israel, their erstwhile ally, more than 20 years ago.
The South Lebanon Army was a mostly Christian militia recruited by Israel when it occupied south Lebanon in the 1980s and 1990s.
The Zadalnikim, as the SLA’s former members are known in Israel from the group’s Hebrew acronym, sought shelter south of the border in the aftermath of Israel’s sudden withdrawal from Lebanon in May 2000, fearing reprisals from Hezbollah, whom they had fought for years in a brutal and uncompromising conflict.
Iran-backed Hezbollah — a Hamas ally with a large arsenal of rockets and missiles — has exchanged fire with Israeli forces almost daily since Hamas attacked Israel on October 7 triggering war in Gaza.
In response, Israel has carried out strikes deeper and deeper into Lebanese territory, targeting several Hezbollah commanders.
A strip several kilometers (miles) wide on either side of the border has become a de facto war zone, emptied of its tens of thousands of civilian residents.
“They told us to prepare for two weeks in a hotel in Tiberias” in northern Israel, said Claude Ibrahim, one of Israel’s more prominent Lebanese collaborators.
“It’s already been six months. I hope it won’t last 24 years,” he told AFP, referring to his exile from Lebanon.


Ibrahim, a former right-hand man of the late SLA commander Antoine Lahad, was evacuated from the northern Israeli town of Kiryat Shmona, near the Lebanese border, in October when the entire city was emptied.
“It’s as if history repeated itself... generation after generation,” he said, referring to how the Zadalnikim had to flee their homeland after years spent moving from village to village during the Lebanese civil war of the 1970s and 1980s.
Of the 6,000 to 7,000 Lebanese who fled to Israel in May 2000, around 3,500 still live in Israel, according to the authorities. They are registered with the interior ministry as “Lebanese of Israel” and were granted citizenship in 2004.
Shortly after their arrival in Israel — where authorities only partly took responsibility for them — many moved on to Sweden, Germany or Canada. Others returned to Lebanon, where they were tried for collaboration with Israel.
All former SLA members in Israel have relatives in Lebanon, mostly in villages in the south, a few kilometers (miles) from the Israeli border.
Few agreed to be interviewed out of fear of reprisals against their families in Lebanon, whom they stay in touch with via third parties for the same reason.
Maryam Younnes, a 28-year-old communications student at Bar-Ilan University near Tel Aviv, was five when she arrived in Israel with her parents.


When her father, a former SLA officer, died a decade ago, they were able to bury him in their ancestral village of Debel, roughly 10 kilometers (six miles) as the crow flies from Ma’alot-Tarshiha, the northern Israeli town they moved to.
The rest of their family remained in Lebanon, in Debel and the capital Beirut.
With fears growing that the near-daily exchanges of fire across the border might escalate into a full-scale war, Younnes was worried about her relatives.
“I’m very concerned for my family, for my village (in Lebanon),” said Younnes, who sees herself as “half Lebanese, half Israeli.”
“I hope that there will be a way to protect them,” she said, if there is an all-out war with Hezbollah.
Ibrahim was equally worried, although he voiced hope that a new conflict with Israel would “finish off” his old enemy Hezbollah.
“The only solution is a big strike on Hezbollah so that it understands that there is no way forward but through peace,” he said.
Ibrahim said there was no reason Israel and Lebanon should not be at peace.
But Asher Kaufman, a history professor at Notre Dame University in Indiana who specializes in Lebanon and the wider Middle East, said attitudes in Israel had shifted significantly in the decades since the civil war and the cooperation between Lebanese Christian militias and the Israeli military.
The vision of an alliance between “Lebanese Christians and the Israelis, which was at the root of the 1982 invasion (of Lebanon by Israel) has completely collapsed.”
Israel has stopped “viewing Lebanon as the Switzerland of the Middle East,” a peaceful and prosperous country, and now sees it as “a violent quagmire it wants nothing to do with.”


Israeli forces must halt ‘active participation’ in settler attacks on Palestinians: UN

Updated 16 April 2024
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Israeli forces must halt ‘active participation’ in settler attacks on Palestinians: UN

  • Israel is still imposing “unlawful” restrictions on humanitarian relief for Gaz

Geneva: The UN voiced grave concern Tuesday over escalating violence in the West Bank, demanding that Israeli security forces “immediately end their active participation in and support for settler attacks” on Palestinians there.
“Israeli authorities must instead prevent further attacks, including by bringing those responsible to account,” Ravina Shamdasani, spokeswoman for the United Nations rights office, told reporters in Geneva.
Israel is still imposing “unlawful” restrictions on humanitarian relief for Gaza, the UN rights office said on Tuesday. “Israel continues to impose unlawful restrictions on the entry and distribution of humanitarian assistance, and to carry out widespread destruction of civilian infrastructure,” said Ravina Shamdasani, spokesperson for the UN human rights office, at a press briefing in Geneva.

The children in Israel’s prisons
Ongoing hostage-for-prisoners exchange opens the world’s eyes to arrests, interrogations, and even abuse of Palestinian children by Israeli authorities
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Heavy rains lash UAE and surrounding nations as the death toll in Oman flooding rises to 18

Updated 16 April 2024
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Heavy rains lash UAE and surrounding nations as the death toll in Oman flooding rises to 18

  • Lightning flashed across the sky, occasionally touching the tip of the Burj Khalifa, the world's tallest building

DUBAI: Heavy rains lashed the United Arab Emirates on Tuesday, flooding out portions of major highways and leaving vehicles abandoned on roadways across Dubai. Meanwhile, the death toll in separate heavy flooding in neighboring Oman rose to 18 with others still missing as the sultanate prepared for the storm.
The rains began overnight, leaving massive ponds on streets as whipping winds disrupted flights at Dubai International Airport, the world's busiest for international travel and the home of the long-haul carrier Emirates.
Police and emergency personnel drove slowly through the flooded streets, their emergency lights flashing across the darkened morning. Lightning flashed across the sky, occasionally touching the tip of the Burj Khalifa, the world's tallest building.
Schools across the UAE, a federation of seven sheikhdoms, largely shut ahead of the storm and government employees were largely working remotely if able. Many workers stayed home as well, though some ventured out, with the unfortunate stalling out their vehicles in deeper-than-expected water covering some roads.
Authorities sent tanker trucks out into the streets and highways to pump away the water.
Rain is unusual in the UAE, an arid, Arabian Peninsula nation, but occurs periodically during the cooler winter months. Many roads and other areas lack drainage given the lack of regular rainfall, causing flooding.
Initial estimates suggested over 30 millimeters (1 inch) of rain fell over the morning in Dubai, with as much as 128 mm (5 inches) of rain expected throughout the day.
Rain also fell in Bahrain, Qatar and Saudi Arabia.
In neighboring Oman, a sultanate that rests on the eastern edge of the Arabian Peninsula, at least 18 people had been killed in heavy rains in recent days, according to a statement Tuesday from the country's National Committee for Emergency Management. That includes some 10 schoolchildren swept away in a vehicle with an adult, which saw condolences come into the country from rulers across the region.


Iran closed nuclear facilities in wake of Israel attack: IAEA chief

Updated 16 April 2024
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Iran closed nuclear facilities in wake of Israel attack: IAEA chief

  • Israel has carried out operations against nuclear sites in the region before
  • Israel accuses Iran of wanting to acquire an atomic bomb, something Tehran denies

United Nations: Iran temporarily closed its nuclear facilities over “security considerations” in the wake of its massive missile and drone attack on Israel over the weekend, the head of the UN’s atomic watchdog said Monday.
Speaking to journalists on the sidelines of a UN Security Council meeting, International Atomic Energy Agency (IAEA) chief Rafael Grossi was asked whether he was concerned about the possibility of an Israeli strike on an Iranian nuclear facility in retaliation for the attack.
“We are always concerned about this possibility. What I can tell you is that our inspectors in Iran were informed by the Iranian government that yesterday (Sunday), all the nuclear facilities that we are inspecting every day would remain closed on security considerations,” he said.
The facilities were to reopen on Monday, Grossi said, but inspectors would not return until the following day.
“I decided to not let the inspectors return until we see that the situation is completely calm,” he added, while calling for “extreme restraint.”
Iran launched more than 300 drones and missiles at Israel overnight from Saturday into Sunday in retaliation for an air strike on a consular building in Damascus that killed seven of its Revolutionary Guards, two of them generals.
Israel and its allies shot down the vast majority of the weapons, and the attack caused only minor damage, but concerns about a potential Israeli reprisal have nevertheless stoked fears of all-out regional war.
Israel has carried out operations against nuclear sites in the region before.
In 1981, it bombed the Osirak nuclear reactor in Saddam Hussein’s Iraq, despite opposition from Washington. And in 2018, it admitted to having launched a top-secret air raid against a reactor in Syria 11 years prior.
Israel is also accused by Tehran of having assassinated two Iranian nuclear physicists in 2010, and of having kidnapped another the previous year.
Also in 2010, a sophisticated cyberattack using the Stuxnet virus, attributed by Tehran to Israel and the United States, led to a series of breakdowns in Iranian centrifuges used for uranium enrichment.
Israel accuses Iran of wanting to acquire an atomic bomb, something Tehran denies.