Lebanese Central Bank Rejects Changing Cash Withdrawal Exchange Rate

A man counts US dollar banknotes at a currency exchange shop in Beirut, Lebanon, June 11, 2021. (Reuters)
A man counts US dollar banknotes at a currency exchange shop in Beirut, Lebanon, June 11, 2021. (Reuters)
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Lebanese Central Bank Rejects Changing Cash Withdrawal Exchange Rate

A man counts US dollar banknotes at a currency exchange shop in Beirut, Lebanon, June 11, 2021. (Reuters)
A man counts US dollar banknotes at a currency exchange shop in Beirut, Lebanon, June 11, 2021. (Reuters)

The Lebanese central bank rejects any change to the exchange rate used to withdraw cash in Lebanese pounds from US dollar accounts in the absence of a comprehensive plan for the economy, which is in deep financial crisis, the bank said on Wednesday.

Hard currency has dried up in Lebanon since it slumped into a major financial meltdown in 2019, and savers with US dollar accounts have only been able to make withdrawals in Lebanese pounds at an exchange rate of 3,900 pounds to the dollar.

This implies a de facto haircut -- or reduction -- of some 80% on the value of their savings, with dollars changing hands at around 17,000 pounds on the parallel market on Wednesday.

Parliamentarians have been calling for the rate applied to cash withdrawals to be raised. But in a statement on Wednesday, the central bank said any change to the rate in the absence of a comprehensive financial plan would have "big consequences" on the money supply "and the dollar exchange rate".

The central bank said it was extending the current rules that determine the exchange rate used for cash withdrawals from hard currency accounts until Jan. 31, 2022, "to give the government time to present its reform plan", the bank said.

Prime Minister Najib Mikati, who took office this month, has vowed to revive talks with the International Monetary Fund and to implement reforms to remedy the crisis.



Biden Warns Israel against Iran Oil Strikes as War Fears Mount

US President Joe Biden speaks during the daily press briefing at the White House in Washington, DC, on October 4, 2024. (AFP)
US President Joe Biden speaks during the daily press briefing at the White House in Washington, DC, on October 4, 2024. (AFP)
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Biden Warns Israel against Iran Oil Strikes as War Fears Mount

US President Joe Biden speaks during the daily press briefing at the White House in Washington, DC, on October 4, 2024. (AFP)
US President Joe Biden speaks during the daily press briefing at the White House in Washington, DC, on October 4, 2024. (AFP)

US President Joe Biden on Friday advised Israel against striking Iran's oil facilities, saying he was trying to rally the world to avoid the escalating prospect of all-out war in the Middle East.

But his predecessor Donald Trump, currently campaigning for another term in power, went so far as to suggest Israel should "hit" Iran's nuclear sites.

Making a surprise first appearance in the White House briefing room, Biden said that Israel's Benjamin Netanyahu "should remember" US support for Israel when deciding on next steps.

"If I were in their shoes, I'd be thinking about other alternatives than striking oil fields," Biden told reporters, when asked about his comments a day earlier that Washington was discussing the possibility of such strikes with its ally.

Biden added that the Israelis "have not concluded how they're, what they're going to do" in retaliation for a huge ballistic missile attack by Iran on Israel on Tuesday.

The price of oil had jumped after Biden's remarks Thursday.

Any long-term rise could be damaging for US Vice President Kamala Harris as the Democrat confronts Republican Trump in a November 5 election where the cost of living is a major issue.

Meanwhile Trump, campaigning in North Carolina, offered a far more provocative view of what he thinks a response to Iran should be, referencing a question posed to Biden this week about the possibility of Israel targeting Iran's nuclear program.

"They asked him, 'what do you think about Iran, would you hit Iran?' And he goes, 'As long as they don't hit the nuclear stuff.' That's the thing you want to hit, right?" Trump told a town hall style event in Fayetteville, near a major US military base.

Biden "got that one wrong," Trump said.

"When they asked him that question, the answer should have been, hit the nuclear first, and worry about the rest later," Trump added.

Trump has spoken little about the recent escalation in tensions in the Middle East. But he issued a scathing statement this week, holding Biden and Harris responsible for the crisis.

- 'Wait to see' -

Biden's appearance at the famed briefing room podium was not announced in advance, taking reporters by surprise.

It comes at a tense time as he prepares to leave office with the Mideast situation boiling over and political criticism at home over his handling of a recent hurricane that struck the US southeast.

Biden said he was doing his best to avoid a full-scale conflagration in the Middle East, where Israel is bombing Lebanon in a bid to wipe out the Iranian-backed Hezbollah.

"The main thing we can do is try to rally the rest of the world and our allies into participating... to tamp this down," he told reporters.

"But when you have (Iranian) proxies as irrational as Hezbollah and the Houthis (of Yemen)... it's a hard thing to determine."

Biden however had tough words for Netanyahu, with whom he has had rocky relations as he seeks to manage Israel's response following the October 7 Hamas attacks on Israel.

The Israeli premier has repeatedly ignored Biden's calls for restraint on Lebanon, and on Israel's war in Gaza, which has killed more than 40,000 Palestinians.

Biden deflected a question on whether he believed Netanyahu was hanging back on signing a Middle East peace deal in a bid to influence the US presidential election.

"No administration has helped Israel more than I have. None, none, none. And I think Bibi should remember that," Biden said.

"And whether he's trying to influence the election, I don't know, but I'm not counting on that."

Biden said he had still not spoken to Netanyahu since the Iranian attack, which involved some 200 missiles, but added their teams were in "constant contact."

"They're not going to make a decision immediately, and so we're going to wait to see when they want to talk," the US leader added.

Iran said its attack was in retaliation for the killing of Hezbollah leader Hassan Nasrallah.

Hezbollah has been launching rockets at Israel since shortly after the October 7, 2023 attacks.