Revenues of Libya’s Ports Decline Due to Unrest

Revenues of Libya’s Ports Decline Due to Unrest
TT

Revenues of Libya’s Ports Decline Due to Unrest

Revenues of Libya’s Ports Decline Due to Unrest

Libya’s commercial seaports have been affected by the ongoing conflict in the country and their revenues have largely declined.

Like many other Libyan institutions and facilities, these ports have been divided between the east and the west, and their maintenance has been neglected. Not to mention, rumors have spread on ports located in the west being exploited to smuggle weapons and mercenaries from Turkey.

Head of Libyan Ports and Maritime Transport Authority (PMTA) in the interim government Hassan Goueli stressed that “the armed conflict has resulted in a dramatic decrease in maritime commercial traffic, exceeding 70 percent in some years.”

He told Asharq Al-Awsat that it is not over yet. “Annual maintenance has stopped along with strategic planning to develop and establish new ports.”

“Ports run by the interim government are nine among 15 all over Libya, including the commercial, oil and industrial,” he noted.

Head of the Libyan Ports Company Yazid Bouzrida highlighted the “significant damage caused by the conflict, particularly during the war on terror years in both Benghazi and Derna a few years ago.”

Bouzrida told Asharq Al-Awsat that there are five commercial ports in the country’s eastern region. These are Benghazi, Brega, Ras Lanuf, Tobruk and Derna.

That in Benghazi is a main port in the east and is considered the country’s second-largest port. It was one of the most affected facilities since its infrastructure, mechanisms, and equipment were 90% destructed during the period when the militias took over the city.

Smuggling arms through commercial ports has been taking place for years now, he noted.

“Before 2014, we were all working in the port and we were monitoring the militias’ attempt to hide the arms smuggling process through cargo containers,” Bouzrida explained, adding that these arms were later shipped by cars to different sites in the city.

However, as the army advanced in the battle to liberate Benghazi, weapons were being smuggled through fishing vessels on the seashore, he stressed.



Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
TT

Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar hit new multi-month highs against the euro and the pound on Thursday, the first day of 2025 trading, as it built on last year's strong gains on expectations US interest rates will remain high relative to peers.

The euro fell to as low as $1.0314, its lowest since November 2022, down around 0.3% on the day. It is now down nearly 8% since its late September highs above $1.12, one major victim of the dollar's recent surge.

Traders anticipate deep interest rate cuts from the European Central Bank in 2025, with markets pricing in at least four 25 basis point cuts, while not being certain of even two such moves from the US Federal Reserve, Reuters reported.

The dollar was hitting milestones across the board and the pound was last down 0.65% at $1.2443, its lowest since April, with its fall accelerating after it broke through resistance around $1.2475.

"It's more of the same at the start of the new calendar year with the dollar continuing to extend its advances in anticipation of Trump putting in place friendly policies at the start of his term," said Lee Hardman, senior currency analyst at MUFG.

US President-elect Donald Trump's policies are widely expected to not only boost growth but also add to upward price pressure. That will lead to a Fed cautious about cutting rates too much further, in turn underpinning US Treasury yields and boost dollar demand.

A weaker growth outlook outside the US, conflict in the Middle East and the Russia-Ukraine war have also added to demand for the dollar.

The dollar also reversed an early loss on Thursday to climb against the Japanese yen, and was last up 0.17% at 157.26.

It reached a five-month high above 158 yen in late December, potentially putting pressure on the Bank of Japan, which is expected to raise interest rates early this year, but possibly not immediately.

"If dollar/yen were to break above 160 ahead of the next BOJ meeting, that could be a catalyst for the BOJ to hike in January rather than wait until March," said Hardman.

"Though for now markets are leaning towards March after the dovish comments from (governor Kazuo) Ueda at his last press conference."

Even those who are more cautious about sustained dollar strength think it could take a long time to play out.

"The dollar may be vulnerable – but only if the US data confound market expectations that the Fed doesn’t cut rates more than once in the first half of this year, and not by more than 50bp in the whole of 2025," said Kit Juckes chief FX strategist at Societe Generale in a note.

"There's a good chance of that happening, but it seems very unlikely that cracks in US growth will appear early in the year – hence my preference for taking any bearish dollar thoughts with me into hibernation until the weather improves."

China's yuan languished at 14-month lows as worries about the health of the world's second-biggest economy, the prospect of US import tariffs from the Trump administration and sliding local yields weighed on investor sentiment.

Elsewhere, the Swiss franc, another victim of the recent dollar strength, gave back early gains to last trade flat at 0.90755 per dollar.

The Australian and New Zealand dollars, however, managed to break away from two-year lows touched on Tuesday. The Aussie was 0.36% higher at $0.6215 having dropped 9% in 2024, its weakest yearly performance since 2018.

The kiwi rose 0.47% to $0.5614.