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Quick Gulf Movement Pushes Bahraini Dinar to Recover

Quick Gulf Movement Pushes Bahraini Dinar to Recover
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Quick Gulf Movement Pushes Bahraini Dinar to Recover

Quick Gulf Movement Pushes Bahraini Dinar to Recover

Bahrain’s dinar recovered against the American dollar in the spot markets during early trading on Wednesday, while Central Bank of Bahrain announced covering the most recent issuance of government treasury bills up to 129 percent.

The recovery of the Bahraini dinar came quick after the standpoint announced by Saudi Arabia with the participation of UAE and Kuwait to support economic reforms in Bahrain in which Saudi Arabia announced that it continues along with Kuwait and UAE talks with Bahrain to reinforce the financial conditions stability.

“The kingdom of Bahrain, along with its sisters Saudi Arabia, the United Arab Emirates and Kuwait, will announce a programme to support the stability of the financial situation in Bahrain,” Finance Minister Sheikh Ahmed bin Mohammed al-Khalifa told the official BNA news agency.

Saudi Arabia, UAE and Kuwait announced an economic program to support financial stability in Bahrain and the recovery of Bahraini dinar. A comprehensive program to back economic reforms and general finance stability in Bahrain is anticipated soon. Positive reactions were restricted to the progress of Bahraini dinar in which Bahrain bills recovered strongly.

Saudi Arabia's Minister of Finance Mohammed Al-Jadaan affirmed that Bahrain has started a package of financial and economic reforms, and will continue to carry out these reforms with the support of its sisters in the Gulf.

The stance announced by Saudi Arabia with the participation of UAE and Kuwait to support economic reforms in Bahrain falls under the Saudi fixed policy to stand with Bahrain no matter what challenges it faces.

Saudi Arabia’s support to Bahrain comes as a continuity to the kingdom’s policy to its sisters and allies in which Saudi Arabia has been the first economic and political backer to Bahrain throughout the history of both countries’ ties.

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Lebanon's Bonds Rally as Parliament Elects 1st President since 2022

Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir
Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir
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Lebanon's Bonds Rally as Parliament Elects 1st President since 2022

Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir
Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir

Lebanese government bonds extended their three-month-long rally on Thursday as the crisis-ravaged country's parliament voted in a new head of state for the first time since 2022.

Lebanese lawmakers elected army chief Joseph Aoun as president. It came after the failure of 12 previous attempts to pick a president and boosts hopes that Lebanon might finally be able to start addressing its dire economic woes.

The country's battered bonds have almost trebled in value since September, when the regional conflict with Israel weakened Lebanese armed group Hezbollah, long viewed as an obstacle to overcoming its political paralysis.

According to Reuters, most of Lebanon's international bonds, which have been in default since 2020, rallied after Aoun's victory was announced to stand 1.3 to 1.7 cents higher on the day and at just over 16 cents on the dollar.

They have risen almost every day since late December, although they remain some of the lowest-priced government bonds in the world, reflecting the scale of Lebanon's difficulties.

With its economy and financial system still reeling from a collapse in 2019, Lebanon is in dire need of international support to rebuild from the conflict, which the World Bank estimates to have cost the country $8.5 billion.

Hasnain Malik, an analyst at financial research firm Tellimer said Aoun's victory was "the first necessary step on a very long road to recovery".

Malik said Aoun now needs to appoint a prime minister and assemble a cabinet that can retain the support of parliament, resuscitate long-delayed reforms and help Lebanon secure international financial support.

The 61-year old Aoun fell short of the required support in Thursday's first round of parliamentary voting and only succeeded in a second round, reportedly after a meeting with Hezbollah and Amal party MPs.

"That presents significant ongoing risk to any new PM and cabinet, which need to maintain the confidence of a majority of parliament," Malik said.