Lebanese Students Abroad Fear their Future Will be Lost over Dollar Crisis

Anti-government protesters break a bank security camera during a protest in Beirut. AP file photo
Anti-government protesters break a bank security camera during a protest in Beirut. AP file photo
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Lebanese Students Abroad Fear their Future Will be Lost over Dollar Crisis

Anti-government protesters break a bank security camera during a protest in Beirut. AP file photo
Anti-government protesters break a bank security camera during a protest in Beirut. AP file photo

Lebanese medical student Mohammad Sleiman traveled to Belarus to become the first doctor in his family, but he now fears his country's economic crisis is going to get him expelled.

"I've got a future and I'm working towards it," the 23-year-old said from his bedroom in the capital Minsk, a dream catcher hanging on the wall behind him.

"But if they throw me out of university, my future will be lost. And it'll be the Lebanese state's fault."

As Lebanese banks forbid depositors from transferring their own money abroad, thousands of students who went abroad to pursue studies they could not afford at home are among the hardest hit.

Students told AFP they had moved into cheaper accommodation, taken on jobs or even cut back on meals. Some had been forced to fly home to Lebanon, with no idea how to return to their studies.

Sleiman said he was so stressed about money that he could hardly concentrate in class.

Back home, his family's dollar savings have been trapped in the bank since 2019, and the 23-year-old has no idea how he will pay tuition fees when his father can barely borrow enough to send him rent.

Last month, he says his name appeared on a list with other Lebanese threatened with expulsion if they did not pay up.

Lebanon's parliament passed a law last year to help students like him, but parents say banks systematically turn them away demanding more paperwork.

In the south of Lebanon, Sleiman's father said he had been to several protests by parents demanding help from the Lebanese authorities, but to no avail.

Without access to his savings, 48-year-old Mousa Sleiman has to buy $300 for his son each month on the black market at an exorbitant exchange rate.

But his earnings from his toy and cosmetics store, in Lebanese pounds now worth 85 percent less at street value, cannot even begin to cover it.

"I've been so worried," the father of eight said, with his eldest son's April rent due. "I'm going to have to go and rack up more debt."

One student activist said parents had also sold cars and gold jewelry to help their children.

Many pin blame for Lebanon's worst financial crisis since the 1975-1990 civil war on political mismanagement and corruption.

As the country's foreign reserves plummet, and amid reports of mass capital flight despite currency controls since 2019, they accuse the ruling class of having plundered their savings.

A law passed last year is supposed to allow parents to access $10,000 per student enrolled abroad in 2019 at the much cheaper official exchange rate.

But parents say the banks don't care.

"They take our requests and dump them in drawers because there's no more money left to send. They stole it," said Sleiman's father.

A handful of parents or grandparents have filed lawsuits against their banks and won, the latest last month.

One of them was able last year to transfer funds to his sons in France and Spain so they could graduate.

Sleiman and fellow parents are looking into doing the same.

And the International Union of Lebanese Youth, covering students in 20 countries, has started working with volunteer lawyers towards filing dozens more cases.

But lawyer and activist Nizar Sayegh said these cases were still rare and complicated by coronavirus lockdowns and banks filing appeals.

Many families also shy away from legal action for fear the banks would then close their account, he said.

In Italy, 20-year-old Reine Kassis said she and fellow cash-strapped Lebanese flatmates were having to delay breakfast till lunch time.

"We eat toast and cheese, then study, study, study until supper," said the mechanical engineering student in Ferrara.

She says she has received a little help in Italy.

But her brother, 23, had to return from Ukraine to Lebanon to continue studying online because he could not afford the rent.

Their father Maurice Kassis, a retired officer, said he was heartbroken.

"I only had two children so I could spoil them, and educate them properly," the 54-year-old said in the eastern town of Zahle.

When he retired, he had enough savings stashed away in Lebanese pounds to cover both of them studying abroad.

But today, with the collapse of the Lebanese currency, those pounds would fetch just an eighth of their old value in dollars.

After he has paid off his home loan with his pension each month, he only has the equivalent of $50 left for the whole family.

"How do you educate your children with that?" he asked.

"I'm telling them to find themselves a future abroad."



Trump's Week of Tariff Turmoil Rings Recession Alarm

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura  REFILE - QUALITY REPEAT
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura REFILE - QUALITY REPEAT
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Trump's Week of Tariff Turmoil Rings Recession Alarm

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura  REFILE - QUALITY REPEAT
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura REFILE - QUALITY REPEAT

A week of turbulence unleashed by US President Donald Trump's tariffs showed little sign of easing on Friday, with financial markets again whipsawing and foreign leaders grappling with how to respond to a dismantling of the world trade order.

A brief reprieve for battered stocks seen after Trump decided to pause duties for dozens of countries for 90 days quickly dissipated, as attention returned to his escalating trade war with China that has fueled global recession fears.

US Treasury Secretary Scott Bessent tried to assuage sceptics by telling a cabinet meeting on Thursday that more than 75 countries wanted to start trade negotiations. Trump himself expressed hope of a deal with China, the world's No.2 economy.

But the uncertainty in the meantime extended some of the most volatile trading since the early days of the COVID-19 pandemic.

The S&P 500 index ended 3.5% lower on Thursday and is now down about 15% from its all-time peak in February.

Asian indices mostly followed Wall Street lower on Friday with Japan's Nikkei down 4%, though markets in Taiwan and Hong Kong turned positive and European stocks were set to open slightly firmer.

A sell-off in government bonds - which caught Trump's attention before Wednesday's pause - picked up pace on Friday with US long-term borrowing costs set for their biggest weekly increase since 1982. Gold, a safe haven for investors in times of crisis, scaled a record high.

"Recession risk is much, much higher now than it was a couple weeks ago," said Adam Hetts, global head of multi-asset at investment fund Janus Henderson.

Bessent on Thursday shrugged off the renewed market turmoil and said striking deals with other countries would bring certainty.

The US and Vietnam have agreed to begin formal trade talks, the White House said. The Southeast Asian manufacturing hub is prepared to crack down on Chinese goods being shipped to the United States via its territory in the hope of avoiding tariffs, Reuters exclusively reported on Friday.

Japanese Prime Minister Shigeru Ishiba, meanwhile, has set up a trade task force that hopes to visit Washington next week. Taiwan said it also expects to be included in the first batch of trading partners to hold talks with Washington.

CHINA DEAL?

As Trump suddenly paused his 'reciprocal' tariffs on other countries hours after they came into effect earlier this week, he ratcheted up duties on Chinese imports as punishment for Beijing's initial move to retaliate.

Trump has now imposed new tariffs on Chinese goods of 145% since taking office, a White House official said.

Chinese officials have been canvassing other trading partners about how to deal with the US tariffs, most recently talking to counterparts in Spain, Saudi Arabia and South Africa.

Trump told reporters at the White House he thought the United States could make a deal with China, but he reiterated his argument that Beijing had "really taken advantage" of the US for a long time.

"I'm sure that we'll be able to get along very well," Trump said, adding that he respected Chinese President Xi Jinping. "In a true sense he's been a friend of mine for a long period of time, and I think that we'll end up working out something that's very good for both countries."

China, which has rejected what it called threats and blackmail from Washington, restricted imports of Hollywood films, targeting one of the most high-profile American exports.

The US tariff pause also does not apply to duties paid by Canada and Mexico, whose goods are still subject to 25% fentanyl-related tariffs unless they comply with the US-Mexico-Canada trade agreement's rules of origin.

With trade hostilities persisting among the top three US trade partners, Goldman Sachs estimates the probability of a recession at 45%.

Even with the rollback, the overall average import duty rate imposed by the US is the highest in more than a century, according to Yale University researchers.

The pause also did little to soothe business leaders' worries about the fallout from Trump's trade war and its chaotic implementation: soaring costs, falling orders and snarled supply chains.

One reprieve came, however, when the European Union said on Thursday it would pause its first counter-tariffs.

The EU had been due to launch counter-tariffs on about 21 billion euros ($23 billion) of US imports next Tuesday in response to Trump's 25% tariffs on steel and aluminium. It is still assessing how to respond to US car tariffs and the broader 10% levies that remain in place.

Finance ministers from the 27-country bloc will brainstorm on Friday how to use the pause to get a trade deal with Washington and how to coordinate their efforts to handle tariffs if they do not.

European authorities estimate the impact of the US tariffs its economy would total 0.5% to 1.0% of GDP. Given the EU economy as a whole is forecast to grow 0.9% this year, according to the European Central Bank, the US tariffs could tip the EU into recession.