BEIRUT: When Caroline Sadaka buys groceries in the Lebanese capital Beirut, she keeps her phone in hand – not to check her shopping list but to calculate the spiralling costs of goods now priced at volatile exchange rates that vary by store and sector.
As Lebanon’s economy continues to collapse, an array of exchange rates for the local pound has emerged, complicating personal accounting and dimming hopes of fulfilling a reform requirement set out by the International Monetary Fund.
The government’s official exchange rate was set at 15,000 pounds to the US dollar in February, a nearly 90 percent devaluation from the longtime peg of 1507.5.
But the Central Bank is selling dollars at a rate of 79,000 to the greenback while the finance minister intends to calculate tariffs for imported goods at 45,000 pounds.
The parallel market rate is meanwhile hovering around 107,000 pounds and changing daily. Supermarkets and fuel stations are required to post signs with the value they’ve adopted for the day, but the rate is changing so fast that many are pricing in the relatively stable USdollar instead.
Examining a can of tuna, Sadaka illustrated the daily quandary faced by shoppers. “This doesn’t have a (logical) price. If you look, it’s in Lebanese pounds, so is this the price? Or is this an old price, and there’s now a price in dollars?,” she wondered.
She quit her job as a school teacher which paid her in local currency, the value of which has decreased by more than 98 percent against the dollar on the parallel market since 2019.
That’s when the economy began unraveling after decades of unsound financial policies and alleged corruption.
To solve the exchange rate confusion, the government needs to implement one unified rate. This is among pre-conditions set by the International Monetary Fund nearly a year ago for Lebanon to get a $3 billion bailout.
But the lender of last resort says reforms have been too slow. They have met resistance from politicians who are shielding vested interests and dodging accountability.
In the meantime, the country has been moving toward a cash-based and dollarized economy given spiralling inflation and restrictions by banks on transactions.
Shop owner Mahmoud Chaar told Reuters the exchange rate was changing so fast that his business was losing money overnight.
Like many business owners, Chaar has to pay in US dollars to import goods but sells in Lebanese pounds. One day, he had sold all his goods based on one rate but woke up the next to find it had jumped nearly 10,000 pounds per US dollar.
“Basically, we lost in the exchange rate difference what we had made in profit,” Chaar told Reuters.
Economist Samir Nasr said the varying rates across sectors were making personal accounting “messy” for Lebanese and unifying them was more urgent than ever.
“What is required is a full group of reforms and steps that will allow for the economic situation to stabilize in general — and would then allow the exchange rate to be unified,” he said.
As economy worsens, Lebanese juggle dizzying rates for devalued pound
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As economy worsens, Lebanese juggle dizzying rates for devalued pound
- Country moving toward a cash-based, dollarized economy given spiralling inflation and restrictions by banks on transactions
Iraq hangs 11 convicted of ‘terrorism’: security, health sources
NASIRIYAH, Iraq: Iraqi authorities have executed this week at least 11 people convicted of “terrorism,” security and health sources said Wednesday, with rights group Amnesty International condemning an “alarming lack of transparency.”
A security source told AFP that 11 “terrorists from Daesh group” were executed by hanging at a prison in Nasiriyah, while a local medical source confirmed that the health department had received the bodies of 11 executed people.
Iraqi authorities have executed this week at least 11 people convicted of “terrorism,” security and health sources said Wednesday. (Reuters)
Biden says Israel must allow aid to Palestinians ‘without delay’
- “We’re going to immediately secure that aid and surge it,” Biden said
- “Israel must make sure all this aid reaches the Palestinians in Gaza without delay“
WASHINGTON: President Joe Biden on Wednesday demanded that new humanitarian aid be allowed to immediately reach Palestinians in the Gaza Strip as key US ally Israel fights Hamas there.
“We’re going to immediately secure that aid and surge it... including food, medical supplies, clean water,” Biden said after signing a massive military aid bill for Israel and Ukraine, which also included $1 billion in humanitarian aid for Gaza.
“Israel must make sure all this aid reaches the Palestinians in Gaza without delay,” he said.
US-Israel relations have been strained by Israel’s conduct of the war in Gaza and Israeli Prime Minister Benjamin Netanyahu’s plan to send troops into the southern Gazan city of Rafah, where 1.5 million people are sheltering, many in makeshift encampments.
“This bill significantly — significantly — increases humanitarian assistance we’re sending to the innocent people of Gaza who are suffering badly,” Biden said.
“They’re suffering the consequences of this war that Hamas started, and we’ve been working intently for months to get as much aid to Gaza as possible.”
Israel hits Lebanese border towns with 14 missiles
- Hezbollah targets Israeli settlements in retaliation for Hanin civilian deaths
- Hezbollah said it attacked the Shomera settlement with dozens of Katyusha rockets
BEIRUT: Clashes between Hezbollah and Israeli forces escalated sharply on Wednesday, the 200th day of conflict in southern Lebanon’s border area.
Israeli airstrikes created a ring of fire around Lebanese border towns, with at least 14 missiles hitting the area.
In the past two days, military activity in the border region has increased, with Hezbollah targeting areas in northern Acre for the first time in the conflict.
On Wednesday, Israeli strikes hit the outskirts of Aita Al-Shaab, Ramya, Jabal Balat, and Khallet Warda.
The Israeli military said it had destroyed a missile launching pad in Tair Harfa, and targeted Hezbollah infrastructure in Marqaba and Aita Al-Shaab.
Israeli artillery also struck areas of Kafar Shuba and Shehin “to eliminate a potential threat.”
Hezbollah also stepped up its operations, saying this was in retaliation for the “horrific massacre committed by the Israeli enemy in the town of Hanin, causing casualties and injuries among innocent civilians.”
A woman in her 50s and a 12-year-old girl, both members of the same family, were killed in the Israeli airstrike. Six other people were injured.
Hezbollah said it attacked the Shomera settlement with dozens of Katyusha rockets.
The group said it also targeted Israeli troops in Horsh Natawa, and struck the Al-Raheb site with artillery.
It also claimed to have killed and wounded Israeli soldiers in an attack on the Avivim settlement.
Israeli news outlets said that a rocket-propelled grenade hit a house in the settlement, setting the dwelling ablaze.
Hezbollah’s military media said that in the past 200 days of fighting with Israel, 1,998 operations had been carried out from Lebanon, Yemen and Iraq, including 1,637 staged by Hezbollah.
Egypt denies any discussions with Israel over Rafah offensive
- Egypt reiterates opposition to any move on Rafah
- Warnings tell of expected losses and negative repercussions
CAIRO: Egypt has denied any discussions with Israel regarding an offensive in the Palestinian city of Rafah in the southern Gaza Strip.
Diaa Rashwan, the head of Egypt’s State Information Service, has refuted what has been claimed in one of the major American newspapers: that Egypt has discussed with the Israeli side its plans for an offensive in Rafah.
Rashwan has affirmed the Egyptian stance — announced several times by its political leadership — of complete opposition to the operation, which it is thought will lead to further massacres, massive human losses, and widespread destruction.
He added that Egypt’s repeated warnings have reached the Israeli side, from all channels, since Israel proposed carrying out a military operation in Rafah. These warnings tell of expected losses and the negative repercussions on the stability of the entire region.
Rashwan added that while Israel is contemplating its operation — which Egypt and most of the world and its international institutions stand against — Egyptian efforts since the beginning of the Israeli aggression had focused on reaching a ceasefire agreement and the exchange of prisoners and detainees.
He said Egypt was seeking the entry of humanitarian aid into the Gaza Strip, especially the north and Gaza City, and the evacuation of wounded and sick people for treatment outside the area.
Egypt has repeatedly opposed the displacement of Palestinians from Gaza and is warning against any military operation in Rafah.
UAE announces $544m for repairs after record rains
- Wednesday's announcement comes more than a week after the unprecedented deluge lashed the desert country
- “The situation was unprecedented in its severity but we are a country that learns from every experience,” Sheikh Mohammed said
DUBAI: The United Arab Emirates announced $544 million to repair the homes of Emirati families on Wednesday after last week’s record rains caused widespread flooding and brought the Gulf state to a standstill.
“We learned great lessons in dealing with severe rains,” said Prime Minister Sheikh Mohammed bin Rashid Al-Maktoum after a cabinet meeting, adding that ministers approved “two billion dirhams to deal with damage to the homes of citizens.”
Wednesday’s announcement comes more than a week after the unprecedented deluge lashed the desert country, where it turned streets into rivers and hobbled Dubai airport, the world’s busiest for international passengers.
“A ministerial committee was assigned to follow up on this file... and disburse compensation in cooperation with the rest of the federal and local authorities,” said Sheikh Mohammed, who is also the ruler of Dubai, which was one of the worst hit of the UAE’s seven sheikhdoms.
The rainfall was the UAE’s heaviest since records began 75 years ago.
Cabinet ministers also formed a second committee to log infrastructure damage and propose solutions, Sheikh Mohammed said in a post on X, formerly Twitter.
“The situation was unprecedented in its severity but we are a country that learns from every experience,” he said.
The storm, which dumped up to two years’ worth of rain on the UAE, had subsided by last Wednesday.
But Dubai faced severe disruption for days later, with water-clogged roads and flooded homes.
Dubai airport canceled 2,155 flights, diverted 115 and did not return to full capacity until Tuesday.
