Aoun Floats Idea of Lebanese Military Govt to ‘Save’ Bassil

President Michel Aoun recieves PM Saad Hariri at the Baabda palace in 2019. (NNA)
President Michel Aoun recieves PM Saad Hariri at the Baabda palace in 2019. (NNA)
TT
20

Aoun Floats Idea of Lebanese Military Govt to ‘Save’ Bassil

President Michel Aoun recieves PM Saad Hariri at the Baabda palace in 2019. (NNA)
President Michel Aoun recieves PM Saad Hariri at the Baabda palace in 2019. (NNA)

A Lebanese parliamentary source warned of a “trap” being set up by President Michel Aoun to transform the Supreme Defense Council into a new military government in an attempt to “save” his heir and son-in-law Jebran Bassil.

The source explained that Aoun is attempting to exploit the current political deadlock and ongoing coronavirus pandemic to declare the formation of a military government, similar to the one he headed in 1988 during the country’s 15-year civil war.

The military government would replace the current caretaker one headed by Premier Hassan Diab, who opposes the proposal, the source told Asharq Al-Awsat.

Aoun’s plan coincides with the “insistence” of Bassil’s Free Patriotic Movement (FPM) to drag the Progressive Socialist Party and Prime Minister-designate Saad Hariri’s Mustaqbal Movement towards a political dispute. Bassil would seek to exploit the dispute to bring forward the proposal to form a military government.

The source said that Aoun had relentlessly tried to use his position as head of the military cabinet to become president. He launched the “war of liberation” against Syrian military deployment in Lebanon and the “war of elimination” against the Lebanese Forces, headed by Samir Geagea, in order to control Christian regions.

He added, however, that Aoun misjudged the regional and international circumstances surrounding Lebanon at the time, which forced him to seek refuge at the French embassy. The Syrian regime later received the greenlight from the United States to eliminate Aoun’s role, prompting him to seek exile in France.

The source said that Aoun is again trying to repeat his experience from 1988 in order to “save” Bassil, whose popularity took a nosedive in wake of the 2019 popular protests and last year’s US sanctions against him.

He added that Aoun is exploiting his presidency of the Supreme Defense Council given that the caretaker government is not convening. The council, said the source, has proven to be ineffective in addressing Lebanon’s stifling economic crisis and surge in coronavirus cases.

Diab has refrained from convening the cabinet to allow Hariri the opportunity form a new government. Those efforts have, however, been met with Aoun’s pressure on Hariri to step down.

The source stressed that the Supreme Defense Council cannot replace an effective government, whose formation is being hampered by Aoun, who already knows that his efforts to drive Hariri to resign will fail.

So what is the point of the president pursuing this line of action? wondered the source, noting that the Supreme Defense Council does not even enjoy any executive power to implement its recommendations.

He also questioned Hariri’s reasons for remaining silent and refraining from frankly addressing the Lebanese to explain the causes of the delay in the government formation.

The source said that Aoun is aware that his presidential term is a failure, even though his political entourage remains in denial and continues to extol his “achievements”. The president is seeking to embarrass Hariri to push him to either resign or yield to his conditions to “save” Bassil.

The source added that Aoun has gone so far as to stoke sectarian sentiments between the Druze PSP and Sunni Mustaqbal in order to divert attention from the government formation process.

The PSP and Mustaqbal are unlikely to fall for the trap because they will opt against giving Aoun an excuse to further exploit sectarian sentiments.

From a FPM standpoint, a sectarian division would embarrass Christian forces opposed to Aoun and Bassil and push Maronite Patriarch Beshara al-Rai to abandon his call on the president and Hariri to reconcile in order to form a new cabinet.

As it stands, Aoun and Bassil find themselves isolated without any Christian support and are relying on the backing offered by their ally, Hezbollah, which in turn does not favor any sectarian dispute.

Significantly, the FPM is avoiding attacking Speaker Nabih Berri, a Shiite and ally of the fellow Shiite Hezbollah. An attack against the speaker, who supports Hariri’s stand, would reshuffle the cards in Lebanon and perhaps even pave the way for Hezbollah to review its calculations. The party would stand against any attack against its main ally to avoid any divisions within its main popular Shiite base.



To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
TT
20

To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)

Cash is the lifeblood of the Gaza Strip’s shattered economy, and like all other necessities in this war-torn territory — food, fuel, medicine — it is in extremely short supply.

With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses and commissions on those transactions have soared to about 40%.

"The people are crying blood because of this," said Ayman al-Dahdouh, a school director living in Gaza City. "It’s suffocating us, starving us."

At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families — some of whom have begun to sell their possessions to buy essential goods.

The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills.

Gaza’s punishing cash crunch has several root causes, experts say.

To curtail Hamas’ ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza’s financial system prompted foreign businesses selling goods into the territory to demand cash payments.

As Gaza’s money supply dwindled and civilians’ desperation mounted, cash brokers' commissions — around 5% at the start of the war — skyrocketed.

Someone needing cash transfers money electronically to a broker and moments later is handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers.

"If I need $60, I need to transfer $100," said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. "This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it."

In 2024, inflation in Gaza surged by 230%, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March.

Cash touches every aspect of life in Gaza

About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts.

But "when you want to buy vegetables, food, water, medication -- if you want to take transportation, or you need a blanket, or anything — you must use cash," al-Dahdouh said.

Shahid Ajjour’s family has been living off of savings for two years after the pharmacy and another business they owned were ruined by the war.

"We had to sell everything just to get cash," said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $12 every two days on flour; before the war, that cost less than $4.

Sugar is very expensive, costing the equivalent of $80-$100 per kilogram (2.2 pounds), multiple people said; before the war, that cost less than $2.

Gasoline is about $25 a liter, or roughly $95 a gallon, when paying the lower, cash price.

Bills are worn and unusable

The bills in Gaza are tattered after 21 months of war.

Money is so fragile, it feels as if it is going to melt in your hands, said Mohammed al-Awini, who lives in a tent camp in southern Gaza.

Small business owners said they were under pressure to ask customers for undamaged cash because their suppliers demand pristine bills from them.

Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers recently demanded he pay them only with brand new 200-shekel ($60) bank notes, which he said are rare. Most civilians pay him with 20-shekel ($6) notes that are often in poor condition.

On a recent visit to the market, Ajjour transferred the shekel equivalent of around $100 to a cash broker and received around $50 in return. But when she tried to buy some household supplies from a merchant, she was turned away because the bills weren’t in good condition.

"So the worth of your $50 is zero in the end," she said.

This problem has given rise to a new business in Gaza: money repair. It costs between 3 and 10 shekels ($1-$3) to mend old bank notes. But even cash repaired with tape or other means is sometimes rejected.

People are at the mercy of cash brokers

After most of the banks closed in the early days of the war, those with large reserves of cash suddenly had immense power.

"People are at their mercy," said Mahmoud Aqel, who has been displaced from his home in southern Gaza. "No one can stop them."

The war makes it impossible to regulate market prices and exchange rates, said Dalia Alazzeh, an expert in finance and accounting at the University of the West of Scotland. "Nobody can physically monitor what’s happening," Alazzeh said.

A year ago, the Palestine Monetary Authority, the equivalent of a central bank for Gaza and the West Bank, sought to ease the crisis by introducing a digital payment system known as Iburaq. It attracted half a million users, or a quarter of the population, according to the World Bank, but was ultimately undermined by merchants insisting on cash.

Israel sought to ramp up financial pressure on Hamas earlier this year by tightening the distribution of humanitarian aid, which it said was routinely siphoned off by militants and then resold.

Experts said it is unclear if the cash brokers’ activities benefit Hamas, as some Israeli analysts claim.

The war has made it more difficult to determine who is behind all sorts of economic activity in the territory, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank.

"It's a dark place now. You don't know who is bringing cigarettes into Gaza," he said, giving just one example. "It's like a mafia."

These same deep-pocketed traders are likely the ones running cash brokerages, and selling basic foodstuffs, he said. "They benefit by imposing these commissions," he said.

Once families run out of cash, they are forced to turn to humanitarian aid.

Al-Farra said that is what prompted him to begin seeking food at an aid distribution center, where it is common for Palestinians to jostle over one other for sacks of flour and boxes of pasta.

"This is the only way I can feed my family," he said.