Lebanese Pound Sinks to Record Low as Deadlock Persists

A money exchange vendor displays Lebanese pound banknotes at his shop in Beirut, Lebanon, November 25, 2021. REUTERS/Mohamed Azakir
A money exchange vendor displays Lebanese pound banknotes at his shop in Beirut, Lebanon, November 25, 2021. REUTERS/Mohamed Azakir
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Lebanese Pound Sinks to Record Low as Deadlock Persists

A money exchange vendor displays Lebanese pound banknotes at his shop in Beirut, Lebanon, November 25, 2021. REUTERS/Mohamed Azakir
A money exchange vendor displays Lebanese pound banknotes at his shop in Beirut, Lebanon, November 25, 2021. REUTERS/Mohamed Azakir

The Lebanese pound on Thursday hit a new record low of 50,000 pounds per US dollar, marking a loss in value of more than 95% since the country's financial system imploded in 2019.

The pound was pegged to the dollar at a rate of 1,507 in 1993, a peg that held until 2019, when decades of profligate spending, mismanagement and corruption triggered a financial crisis.

The largest bill in circulation, the 100,000 pound note formerly worth $67, is now worth just $2.

The Lebanese pound's plunge comes days after a European judicial delegation from France, Germany, and Luxembourg landed in Beirut to interrogate embattled Central Bank Governor Riad Salameh and a dozen affiliates in a European money laundering investigation of some $330 million. They so far have questioned banking officials and former central bank officials. Switzerland and Liechtenstein have also opened probes against Salameh for money laundering allegations.

Lebanon's deeply-divided parliament is meanwhile in flux. It has continuously failed to agree on a new head of state since President Michel Aoun's six-year term ended on Oct. 30. All but 18 of the Parliament's 128 legislators showed up Thursday, with most — 71 lawmakers — voting either for parliamentarian Michel Moawad, an outspoken critic of Iran-backed Hezbollah, or casting blank ballots.

The worsening political paralysis has left the country without a president and only a caretaker government, stalling a host of economic reforms aimed at stopping wasteful spending and combating rampant corruption.



Israeli Strikes Kill Dozens in Gaza Strip as New Ceasefire Talks Begin

A Palestinian woman reacts at the site of an Israeli strike on a house, amid the ongoing conflict between Israel and Hamas, in Gaza City, January 4, 2025. REUTERS/Dawoud Abu Alkas
A Palestinian woman reacts at the site of an Israeli strike on a house, amid the ongoing conflict between Israel and Hamas, in Gaza City, January 4, 2025. REUTERS/Dawoud Abu Alkas
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Israeli Strikes Kill Dozens in Gaza Strip as New Ceasefire Talks Begin

A Palestinian woman reacts at the site of an Israeli strike on a house, amid the ongoing conflict between Israel and Hamas, in Gaza City, January 4, 2025. REUTERS/Dawoud Abu Alkas
A Palestinian woman reacts at the site of an Israeli strike on a house, amid the ongoing conflict between Israel and Hamas, in Gaza City, January 4, 2025. REUTERS/Dawoud Abu Alkas

An Israeli military strike killed 12 people in a house in Gaza City early on Saturday, bringing the death toll from strikes across Gaza to 62 over the last day, Palestinian medics said, as mediators launched a new ceasefire push in Qatar.

Residents and medics said at least 14 people had been in the house of the Al-Ghoula family when the strike took place in the early hours, destroying the building, Reuters reported.

People scoured the rubble for possible survivors trapped under the debris and medics said several children were among those killed. A few flames and trails of smoke continued to rise from burning furniture in the ruins hours after the attack.

"At about 2 a.m. (00:00 GMT) we were woken up by the sound of a huge explosion," said Ahmed Ayyan, a neighbour of the Al-Ghoula family, adding that 14 or 15 people had been staying in the house.

"Most of them are women and children, they are all civilians, there is no one there who shot missiles, or is from the resistance," Ayyan told Reuters.

There was no immediate comment from the Israeli military on the incident.

The military said in a statement on Saturday that its forces had continued their operations this week in Beit Hanoun town in the northern edge of the enclave, where the army has been operating for three months, and had destroyed a military complex that had been used by Hamas.

Later on Saturday, an Israeli airstrike killed three people in a car east of Deir Al-Balah in central Gaza, medics said. Dozens of Palestinians were killed in strikes on Friday, bringing the death toll during the past 24 hours to 62, health officials said.

A surge in Israeli operations and the number of Palestinians killed in recent days comes amid a renewed push to reach a ceasefire in the 15-month-old war and return Israeli hostages before US President-elect Donald Trump takes office on Jan. 20.

Israeli mediators were dispatched to resume talks in Doha brokered by Qatari and Egyptian mediators, and US President Joe Biden's administration, which is helping to broker the talks, urged Hamas on Friday to agree to a deal.

Hamas said it was committed to reaching an agreement but it was unclear how close the two sides were.