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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)
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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.

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Cash Shortage Squeezes Gaza Residents

Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)
Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)
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Cash Shortage Squeezes Gaza Residents

Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)
Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)

Even when food is available, many in Gaza cannot afford to buy it, as the enclave suffers from a severe cash shortage. Israel has blocked the entry of new currency into the territory since October 7, 2023, leaving residents at the mercy of money changers who have hiked exchange rates on remittances to exorbitant levels.

Palestinians in Gaza primarily rely on the Israeli shekel for daily transactions, which used to enter the strip through banks operating under the Palestinian Monetary Authority, supplied by the Bank of Israel.

Banking operations in Gaza have ground to a halt since the start of the war, and no fresh banknotes have entered the enclave, worsening an already dire humanitarian situation. Residents say they have been left at the mercy of traders who exploit the cash shortage to impose arbitrary rules on currency use.

'The Traders’ Game'

Dubbed “the traders’ game” by many in Gaza, the practice began with merchants refusing to accept worn-out banknotes and certain coins, such as the 10-shekel piece (worth about $3), which have all but vanished from local markets. Some vendors now reject older versions of bills - like the brown-hued 100-shekel note (around $28) - insisting instead on the newer yellow ones. The same rules apply to various denominations.

Speaking to Asharq Al-Awsat, Hani Jahjouh, a resident of al-Shati Camp west of Gaza City, said vendors selling vegetables and essential goods - when available - often refuse worn banknotes or specific coins, claiming they are counterfeit or easily faked.

“This just adds to the burden of people already crushed by impossible living conditions,” said Jahjouh, 59. “We don’t have solutions. We don’t even know where to get the money they’re asking for.”

Only a very small number of traders accept digital payments, and even then, residents say, they impose tough conditions - such as inflated prices or demands for partial payment in cash.

Displaced Gazan Duaa Ismail, originally from Beit Hanoun in the north of the enclave, says even when goods are available, she cannot afford them due to a lack of cash.

“We’re suffering badly from a shortage of money, and that makes it even harder to get basic items like flour and sugar - when they’re even in stock,” she told Asharq Al-Awsat from a shelter in Gaza City’s Sheikh Radwan neighborhood.

Ismail said that during a brief ceasefire, some traders had accepted digital payments through mobile apps. “But once the war resumed, things worsened, and they stopped taking them altogether,” she said.

Salaries They Can’t Spend

The crisis has also hit public-sector employees, private workers, and international aid staff, many of whom receive salaries through bank transfers or mobile wallets but have no way of accessing their funds with banks shuttered. They are forced to rely on currency dealers or traders with access to physical cash.

Amjad Hasballah, an employee with the Palestinian Authority, said he has been cashing his monthly salary through mobile banking apps for over a year and a half, paying a steep commission to money traders in return.

“When I received my last salary in early April, the commission had reached 30%,” he said.

Speaking to Asharq Al-Awsat, Hasballah explained that at the start of the war, commissions hovered around 5%, but they spiked during Ramadan, peaking at 35% around Eid al-Fitr, before dipping slightly to 30%.

“My salary is just 2,800 shekels. When I pay a 30% fee, there’s barely anything left,” he said bitterly. “At this point, the traders might as well take the whole salary and just give us pocket money.”

Caught in a Trap

Jamal Al-Mashal, a father of six who lost two children in an Israeli airstrike, said he lives off 1,000 shekels (about $280) in monthly international aid. But even that amount is slashed by up to 30% when he exchanges it through local traders.

“People in Gaza have become a cash trap for currency dealers and big traders,” he said. “They’re exploiting our desperation, and it’s like a harvest season for them - raking in profits while we suffer.”

The poorest and most vulnerable are hit hardest. Many international agencies rely on electronic payment platforms to distribute aid to these groups, who often have no access to physical currency.

No Oversight, No Restraint

The Hamas-run government has made attempts to cap commission rates at 5%, but those efforts have largely failed. Officials blame ongoing Israeli targeting of personnel involved in regulating the process.

Money changers defend the high fees, arguing that the lack of currency entering Gaza leaves them with limited options.

“We raise commission rates because there’s simply no new cash coming in,” one trader told Asharq Al-Awsat. “Once money is distributed to the public, we have no way of getting it back. What goes out doesn’t return.”

He added that while ministries and law enforcement have tried to impose limits, traders view the rules as unfair. “There have been attempts to regulate us, but we haven’t complied - they’re asking too much from us under impossible conditions,” he said.

Some municipal leaders and community elders in Gaza have recently appealed to the Palestinian Monetary Authority in Ramallah to intervene in what they describe as unchecked profiteering by traders controlling access to scarce cash.

They have called for greater oversight, including monitoring and freezing the traders’ bank accounts.

The authority has repeatedly warned against exploitation of civilians and threatened to take action. But in practice, traders continue to charge hefty commissions on money transfers with little deterrence.

The Authority has urged residents to use its Instant Payment System available through mobile banking apps, which it says offers a practical alternative to cash, promotes digital payments, and enables real-time transactions.

Cash Squeeze Tightens Further

Despite the hardship, Israel is considering new measures that could further tighten the financial stranglehold on Gaza. One proposal involves withdrawing the 200-shekel banknote (worth about $55) from circulation, on the grounds that Hamas allegedly uses it to pay salaries to its fighters.

The suggestion was reportedly made by Israeli Foreign Minister Gideon Sa’ar to Bank of Israel Governor Amir Yaron, who rejected the move. Other proposals include voiding the serial numbers of banknotes believed to be inside Gaza, effectively rendering them worthless, a step that could deliver a significant financial blow to Hamas.

According to a report published Tuesday by the Israeli daily Maariv, the proposal has backing from several ministers and economists both within and outside the central bank.

The report estimated that around 10 billion shekels in high-denomination bills - 100 and 200 shekels - remain in circulation within Gaza. These notes entered the enclave over the years through official banking channels supplied by the Bank of Israel.

Economists told Maariv that Gaza residents receive an estimated 150 to 200 million shekels each month through digital transfers from aid organizations and the Palestinian Authority. That money is then converted into cash within markets dominated by Hamas and supported by a network of money changers.

Israeli security sources estimate that Hamas has accumulated up to five billion shekels since the war began and has spent nearly one billion shekels on salaries for fighters and new recruits. The sources claim Hamas has profited significantly by reselling aid and fuel at inflated prices during the conflict.