US has told Lebanon not to fear sanction law over energy supply plans, says PM’s office

Fuel tankers block a road in Beirut during a general strike on Jan. 13, 2022 by public transport and workers unions over the country's economic crisis. (Anwar Amro / AFP)
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Updated 15 January 2022
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US has told Lebanon not to fear sanction law over energy supply plans, says PM’s office

  • Weak local currency piling pressure on population
  • IMF delegation postpones Lebanon visit to February

BEIRUT: The US has told Lebanon it should not fear a sanctions law over its plans to receive energy supplies from the region, according to a statement from Prime Minister Najib Mikati’s office on Friday.

US ambassador to Lebanon, Dorothy Shea, handed Mikati a letter from the US Treasury to answer Lebanese authorities’ concerns about regional energy agreements that the US had helped to facilitate with Jordan and Egypt.

The diplomat said: “There will be no fears from the US sanctions law. This message represents forward momentum and an important milestone as we continue to make progress to achieve cleaner and more sustainable energy, to help address the energy crisis.”

Lebanon is grappling with a deep financial crisis and a weak local currency that is piling pressure on the population.

On Friday, the dollar exchange rate on the black market dropped by more than LBP5,000 at once to reach LBP27,500.

Money exchange shops tried to limit their sales of dollars after people rushed to buy or sell them.

The Central Bank issued a circular on Dec. 27 and followed it up with amendments. The circular removed a ceiling related to bank purchases of dollars using the official Sayrafa exchange rate platform.

It allowed depositors and account holders of Lebanese pounds to withdraw their deposits and salaries in dollars based on the rate set by Sayrafa.

The move pumped dollars into the Lebanese market by replacing withdrawals from pounds with fresh dollars.

A new clause was introduced allowing the banks to increase the quota in dollars, by buying dollar bills from the Central Bank at the rate set by Sayrafa using the pounds owned by these banks or their clients with no specific ceiling. This was aimed at meeting the demand for dollar withdrawals.

Financial experts said these measures would reduce the dollar exchange rate on the parallel market as a result of supply and demand and take back the pounds “stashed by citizens in their homes,” bringing down the inflation.

It also allowed the reassessment of the Central Bank's role in the issue of controlling the dollar exchange rate, the experts added.

This role had recently faded as a result of speculation and the Central Bank’s focus on subsidizing commodities, fuel and medicines, they pointed out.

The main focus should have been on controlling the dollar rate as it was the starting point to control other prices, said the experts.

The crisis of confidence in the banking sector has been escalating since late 2017, leading to a decrease in the flow of capital to Lebanon, while a parallel market became prominent in Sept. 2019. The political authorities at the time did not - and still have not - agreed to approve the introduction of capital controls.

Black market money changers have been flooded with Lebanese pounds. Audio recordings of them expressing their confusion and concern about the latest developments have been shared on social media.

A banking expert told Arab News: “The Central Bank began a test procedure on Dec. 27. People exchanged their salaries at banks from Lebanese pounds to dollars based on the Sayrafa exchange rate.

“Money exchange shops are now left with huge amounts of dollars, for people are no longer willing to buy dollars from them because of the high exchange rate, which led to a decrease in the exchange rate of the dollar on the black market.

“The Central Bank is thus trying to maintain the dollar exchange rate within a certain range. It is possible to say that, with this measure, the Central Bank is restoring its role in the currency market.”

However, the banking expert feared a surge in the dollar exchange rate during the weekend, with banks closing their doors and the attempt of Syrian dealers in the Bekaa to buy dollars from the region’s money changers.

He also expected the exchange rate to drop again at the beginning of the week with the banks resuming their work.

Economist Dr. Louis Hobeika told Arab News: “These are superficial declines, as the political situation is further deteriorating and nothing suggests the emergence of solutions any time soon.

“If this measure is not accompanied by the resumption of the Cabinet’s meetings and the launch of a recovery plan that includes implementing reforms and restoring confidence in the banking sector, these measures will be nothing but unreliable tactics. The issue is not monetary, but political and economic. What the Central Bank is trying to do is fine tuning.”

When asked if the measure may lead to the unification of the dollar exchange rate, which is one of the International Monetary Fund’s demands, Hobeika replied: “I think that the rate of the Sayrafa platform is the most reasonable one in Lebanon.”

But Hobeika said the matter had “nothing to do” with the IMF.

The IMF delegation, which was scheduled to arrive in Lebanon this month, has postponed its visit until February.


Hamas slams US veto of Palestinian UN membership bid

Updated 9 sec ago
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Hamas slams US veto of Palestinian UN membership bid

PALESTINIAN TERRITORIES: Palestinian militant group Hamas condemned on Friday the US veto that ended a long-shot Palestinian bid for full United Nations membership.
“Hamas condemns the American veto at the Security Council of the draft resolution granting Palestine full membership in the United Nations,” the Gaza Strip rulers said in a statement, which comes amid growing international concern over the toll inflicted by the war in the besieged Palestinian territory.
The veto by Israel’s main ally and military backer had been expected ahead of the vote, which took place more than six months into Israel’s offensive in Gaza, in retaliation for the deadly October 7 attack by Hamas militants.
Twelve countries voted in favor of the draft resolution, which was introduced by Algeria and “recommends to the General Assembly that the State of Palestine be admitted to membership of the United Nations.” Britain and Switzerland abstained.


Gazans search for remains after deadly Rafah strike

Updated 18 April 2024
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Gazans search for remains after deadly Rafah strike

An Israeli strike hit the home where a displaced Palestinian family was sheltering in the southern city of Rafah, relatives and neighbors told AFP as they scraped at the soil with their hands.

Al-Arja said the blast killed at least 10 people.

“We retrieved the remains of children and women, finding arms and feet. They were all torn to pieces.

“This is horrifying. It’s not normal,” he said, hauling concrete and broken olive branches from the wreckage. “The entire world is complicit.”

Soon after the war began on Oct. 7, Israel told Palestinians living in the north of Gaza to move to “safe zones” in the territory’s south, like Rafah.

But Israeli Prime Minister Benjamin Netanyahu has since vowed to invade the city, where around 1.5 million people live in shelters, more than half the territory’s population.

“How is Rafah a safe place?” said Zeyad Ayyad, a relative of the victims. He sighed as he cradled a fragment of the remains.

“I heard the bombing last night and then went back to sleep. I did not think it hit my aunt’s house.”

The search for remains was long and painful. The strike left a huge crater and children picked through the rubble while neighbors removed debris, tarpaulin, a pink top.

“We can see them under the rubble and we’re unable to retrieve them,” Al-Arja said. 

“These are people who came from the north because it was said the south is safe.”

“They struck without any warning,” he said.

In a separate strike on the house in Rafah’s Al-Salam neighborhood overnight on Tuesday, rescue crews recovered the corpses of eight family members, including five children and two women, Gaza’s civil defense service said.

“An Israeli rocket hit a house of displaced people,” said resident Sami Nyrab. 

“My sister’s son-in-law, her daughter, and her children were having dinner when an Israeli missile demolished their house over their heads.”


Dubai clears up after epic rains swamp glitzy city

Updated 18 April 2024
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Dubai clears up after epic rains swamp glitzy city

  • The rains were the heaviest experienced by the UAE in the 75 years that records have been kept

DUBAI: Dubai was busy on Thursday clearing its waterlogged roads and drying out flooded homes two days after a record storm deposited a year’s worth of rainfall in a day.

Dubai International Airport, a major travel hub, struggled to clear a backlog of flights, and many roads were still flooded in the aftermath of Tuesday’s deluge.

The rains were the heaviest experienced by the UAE in the 75 years that records have been kept. 

They brought much of the country to a standstill and caused significant damage.

Flooding trapped residents in traffic, offices, and homes. 

Many reported leaks at their homes, while footage circulated on social media showed malls overrun with water pouring from roofs.

Traffic remained heavily disrupted. 

A highway through Dubai was reduced to a single lane in one direction, while the main road connecting Dubai with Abu Dhabi was closed in the Abu Dhabi direction.

“This was like nothing else. It was like an alien invasion,” said Jonathan Richards, a Dubai resident from Britain.

“I woke up the other morning to people in kayaks, pet dogs, pet cats, and suitcases outside my house.”

Another resident, Rinku Makhecha, said the rain swamped her newly renovated house, which she moved into two weeks ago.

“My entire living room is just like ... all my furniture is floating right now,” she said.

In Dubai’s streets, some vehicles, including buses, could be seen almost entirely submerged in water. 

Long queues formed at petrol stations.

Dubai Airport had not resumed normal operation after the storm flooded taxiways, forcing flight diversions, delays, and cancellations.

Dubai Airport Chief Operating Officer Majed Al Joker told Al Arabiya TV he expected Dubai International Airport to reach 60 to 70 percent capacity by the end of Thursday and full operational capacity within 24 hours.

The airport struggled to get food to stranded passengers, with nearby roads flooded and overcrowding limited access to those who had confirmed bookings.

While some roadways into hard-hit communities remain flooded, delivery services across Dubai, whose residents are used to ordering everything at the click of a mouse, slowly began returning to the streets.

Following Tuesday’s events, questions were raised about whether cloud seeding, a process that the UAE frequently conducts, could have caused the heavy rains.

A UAE government agency overseeing cloud seeding — manipulating clouds to increase rainfall — denied conducting such operations before the storm.

President Sheikh Mohammed bin Zayed Al-Nahyan said in a statement that he had ordered authorities to assess the damage and support families impacted by the storm.

Dubai’s Crown Prince Sheikh Hamdan bin Rashid Al-Maktoum said on X that the safety of citizens, residents, and visitors was the utmost priority.

“At a meeting with government officials in Dubai, we set directives to prepare comprehensive plans in response to natural crises such as the unexpected current weather conditions,” he said.


Hezbollah says 2 fighters killed in Israeli strikes

Updated 19 April 2024
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Hezbollah says 2 fighters killed in Israeli strikes

  • GPS interference affecting both sides of Lebanese border, source says

BEIRUT: Two Hezbollah fighters were killed on Wednesday as Israel intensified strikes on south Lebanon following an attack by the Iran-backed group that wounded 14 Israeli soldiers.

Israel and Hezbollah have exchanged near-daily cross-border fire since Palestinian militant group Hamas attacked southern Israel on Oct. 7, triggering war in the Gaza Strip.

A security source said: “Hezbollah’s complex attack against the Israeli army in Wadi Al-Aramshe early on Wednesday, which led to the injury of 14 Israeli soldiers, including six with serious injuries, was absorbed by the Israeli side after the painful blow it directed at the party by assassinating three of its field officials.”

The Israeli army responded to the Wadi Al-Aramshe operation on Wednesday night by targeting the town of Iaat in the Bekaa Valley, 5 km from Baalbek. A drone strike hit a warehouse belonging to a member of the Al-Zein family, resulting in light wounds to one civilian.

Israel continues to jam GPS around the Lebanese southern border region, especially during military operations.

A security source said: “This interference negatively affects both the Israeli army and Hezbollah in targeting objectives.”

Hezbollah announced a series of operations since dawn on Thursday, targeting Israeli military sites opposite the Lebanese border.

The group targeted an Israeli force attempting to withdraw a military vehicle that was targeted on Wednesday at Metula, opposite the Lebanese town of Kfarkela.

At dawn, Israeli soldiers in Al-Malikiyah, opposite the Lebanese town of Aitaroun, were targeted by Hezbollah using missiles.

The group also targeted Israeli soldiers in Al-Marj.

“After careful monitoring and anticipation of the enemy’s movement at Al-Marj … they were targeted with missile weapons and suffered a direct hit; some died while others were injured,” the group said in a statement.

Hezbollah attacked Israeli soldiers using missiles in the Hanita forest, opposite the Lebanese town of Alma Al-Shaab.

On Thursday, the party mourned two members killed in Wednesday night’s shelling of Kfarkela. Mohammed Jamil Al-Shami from Kfarkela and Ali Ahmed Hamadeh from Doueir were killed in the Israeli operation.

The Israeli army targeted Lebanese towns with heavy shelling until dawn on Thursday. The town of Khiam was a priority target; correspondents in the area counted seven strikes and 128 artillery and phosphorous shells impacting between 8 p.m. and 4 a.m.

A young man from Habboush, Ahmed Hassan Al-Ahmed, was killed in the shelling and mourned by residents of his town.

Jets struck Hezbollah targets in Khiam, including infrastructure and two military buildings, the Israeli army said.

Israeli drones targeted a house on the outskirts of Markaba and in Blida on Thursday, with casualties reported.

The Israeli army also targeted Kfarkela with two missiles from a drone, and with artillery and phosphorous shells. From Metula opposite the border, Israeli soldiers combed the town with heavy machine guns.

The outskirts of Dhayra, Al-Bustan and Aita Al-Shaab were hit by gunfire from the Israeli position in Birkat Risha and other positions adjacent to the Blue Line.

German airline Lufthansa announced on Thursday it had extended the suspension of flights to Beirut and Tehran until April 30.

The decision was taken on the night of the Iranian attack on Israel last weekend.

UNIFIL spokesman Andrea Tenenti said that the organization’s peacekeepers “remain in their positions and carry out their duties, as well as our civilian staff.”

He added: “The safety and security of UN staff and their families are our priority.”


Dubai clears up after epic rains swamp glitzy desert city

Updated 18 April 2024
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Dubai clears up after epic rains swamp glitzy desert city

  • Rains were the heaviest experienced by the United Arab Emirates in the 75 years that records have been kept
  • Flooding trapped residents in traffic, offices and homes, houses’ roofs leaked and malls were overrun with water 

DUBAI: Dubai, a city in the desert proud of its futuristic gloss, was on Thursday busy clearing its waterclogged roads and drying out flooded homes two days after a record storm saw a year’s rain fall in a day.
Dubai International Airport, a major travel hub, struggled to clear a backlog of flights and many roads were still flooded in the aftermath of Tuesday’s deluge.
The rains were the heaviest experienced by the United Arab Emirates in the 75 years that records have been kept. They brought much of the country to a standstill and caused significant damage.
Flooding trapped residents in traffic, offices and homes. Many reported leaks at their homes, while footage circulated on social media showed malls overrun with water pouring from roofs.
Traffic remained heavily disrupted. A highway through Dubai was reduced to a single lane in one direction, while the main road that connects Dubai with the capital Abu Dhabi was closed in the Abu Dhabi direction.
“This was like nothing else. It was like an alien invasion,” Jonathan Richards, a Dubai resident from Britain told Reuters.
“I woke up the other morning to people in kayaks with pet dogs, pet cats, suitcases all outside my house.”
Another resident, Rinku Makhecha, said the rain swamped her freshly renovated house she moved into two weeks ago.
“My entire living room is just like ... all my furniture is floating right now,” she said.
In Dubai’s streets, some vehicles, including buses, could be seen almost entirely submerged in water. Long queues formed at petrol stations.
Dubai airport had yet to resume normal operation after the storm flooded taxiways, forcing flight diversions, delays and cancelations.
Dubai Airports Chief Operating Officer Majed Al Joker told Al Arabiya TV he expected Dubai International Airport to reach 60-70 percent capacity by the end of Thursday and full operational capacity within 24 hours.
The airport struggled to get food to stranded passengers with nearby roads flooded and overcrowding limited access to those who had confirmed bookings.
RETURNING SUPPLIES
The storm, which hit neighboring Oman on Sunday, pounded the UAE on Tuesday, with 20 reported dead in Oman and one in the UAE.
While some roadways into hard-hit communities remain flooded, delivery services across Dubai, whose residents are used to ordering everything at the click of a mouse, slowly began returning to the streets.
Rains are rare in the UAE and elsewhere on the Arabian Peninsula, which is typically known for its dry desert climate. Summer air temperatures can soar above 50 degrees Celsius.
Following Tuesday’s events, questions were raised whether cloud seeding, a process that the UAE frequently conducts, could have caused the heavy rains.
But climate experts blame global warming for such extreme weather events.
Researchers anticipate that climate change will lead to heightened temperatures, increased humidity and a greater risk of flooding in parts of the Gulf region. Countries like the UAE where there is a lack of drainage infrastructure to cope with heavy rains can suffer the most.
A UAE government agency that oversees cloud seeding — a process of manipulating clouds to increase rainfall — denied conducting any such operations before the storm.
President Sheikh Mohammed bin Zayed Al Nahyan said in a statement he had ordered authorities to assess the damage and provide support to families impacted by the storm.
Dubai’s Crown Prince Sheikh Hamdan bin Rashid Al Maktoum said on X that the safety of citizens, residents and visitors was the utmost priority.
“At a meeting with government officials in Dubai, we set directives to prepare comprehensive plans in response to natural crises’ such as the unexpected current weather conditions,” he said.