US dollar scarcity in the Lebanese market has forced some banks to withhold the foreign currency from everyday use.
Such banks have only allowed customers to withdraw in Lebanese lira all remittances sent in dollar from abroad, preventing them from withdrawing dollars from ATMs.
Banks also placed a ceiling on clients when withdrawing US dollars from their accounts.
The policies to block the dollar, particularly among merchants, drove people to trade their Lebanese liras at exchange firms for LL1,600 against the dollar, exceeding the daily LL1,507 benchmark set by the Central Bank.
Several sectors sounded the alarm this month, including an open-ended strike announced Thursday by Lebanese gas station owners due to a shortage in dollar reserves that has made it difficult to pay suppliers.
Gas stations in Lebanon are paid by customers in Lebanese pounds but must pay suppliers in US dollars.
But the syndicate of gas station owners suspended the strike on Friday.
Similar to gasoline importers, wheat importers say they cannot secure the requisite US dollars needed to pay for the import of wheat at the price set by the Central bank.
The series of strikes and warnings pushed the Central Bank to issue a statement on Thursday announcing that it would organize the funding of imports of wheat, medicine and fuel in dollars as of next Tuesday.
A leading merchant in Beirut told Asharq Al-Awsat that the Bank’s intervention could be the start of a fierce rationing on imports.
“Such measures are usually taken to curb the level of imports with an aim to bring down the trade deficit and the balance of payments,” the merchant said, adding that this policy would not solve the problem.
In a related development, a source said the visit of US Treasury Department Assistant Secretary Marshall Billingslea to Beirut early this week, came to warn Lebanese banks from selling US dollars to Syrians placed on the US sanctions lists.
Economic researcher Dr. Makram Rabah said that the dollar crisis aggravated in Lebanon after some merchants began buying dollars in the Lebanese black market to ensure fuel to the Syrian market.
“The Lebanese people are paying the price of some greedy merchants and the Bashar Assad regime, which is using Lebanon to evade sanctions,” he said.
Crude Prices Drop, Most Stocks Rise on 'Positive' US-Iran Talkshttps://english.aawsat.com/business/5287017-crude-prices-drop-most-stocks-rise-positive-us-iran-talks
Crude Prices Drop, Most Stocks Rise on 'Positive' US-Iran Talks
A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
Oil prices fell Monday on optimism over US-Iran peace talks, with mediators flagging a "roadmap" to a final agreement, while most equities rose thanks to another healthy start for tech firms.
After a meeting planned for Friday was cancelled owing to fighting between Israel and Hezbollah, the negotiations finally got underway on Sunday in Switzerland with teams led by US Vice President JD Vance and Iran's Mohammad Bagher Ghalibaf.
Traders remain in buoyant mood after news that the two foes had ended their conflict, which had sent energy costs soaring and stoking inflation, sending shivers through the global economy.
There were initial jitters following reports that Iran had called off the talks over US President Donald Trump's threat to carry out more strikes if Hezbollah kept attacking Israel, but mediators Pakistan and Qatar said the talks took place in "a positive and constructive atmosphere".
The mood improved as Qatar and Pakistan announced progress, which aim to address Tehran's nuclear program and reopen the Strait of Hormuz, through which a fifth of oil and gas pass.
The two said the United States and Iran agreed to set up a "communication line" to avoid incidents in the crucial waterway, and "the High Level Committee has agreed upon a roadmap towards reaching a final deal within 60 days, laying the foundation for the immediate commencement of further technical talks".
Iranian Foreign Minister Abbas Araghchi added on X that "mediation has delivered major progress to end Lebanon War".
Both main oil contracts fell in early trade, while most stock markets advanced.
Tokyo climbed two percent, Seoul was up more than one percent and Taipei jumped 2.7 percent.
The gains came on the back of another rally in tech firms, particularly chipmakers including South Korea's SK hynix, Taiwan's TSMC and Japan's Advantest.
Sydney, Wellington and Jakarta also advanced, though there were losses in Hong Kong, Shanghai and Singapore.
"Following the positive response last week to reports of a US-Iran ceasefire, markets are likely to open with a cautious tone to start the new week as it remains clear that the situation in the Middle East remains fragile," said National Australia Bank's Skye Masters.
"The dollar is likely to remain supported, the oil price could swing either way but at current levels the risk is for a lift higher."
Sterling remained under pressure after suffering selling following Thursday's election of UK Labor politician Andy Burnham that ramped up expectations he will oust beleaguered Prime Minister Keir Starmer.
The embattled premier "is expected to announce on Monday that he will step down as prime minister after overwhelming pressure from Labor MPs to make way for Andy Burnham", Britain's Guardian newspaper said.
Investors were nervous that Burnham could introduce fresh spending plans that would add to the country's already huge debt pile.
Gold Rebounds from One-Week Low as Iran Cites Progress in Peace Talkshttps://english.aawsat.com/business/5287000-gold-rebounds-one-week-low-iran-cites-progress-peace-talks
Ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, June 16, 2026. (Reuters)
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Gold Rebounds from One-Week Low as Iran Cites Progress in Peace Talks
Ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, June 16, 2026. (Reuters)
Gold rebounded from a more than one-week low on Monday, as oil prices fell after Iran cited progress in US-Iran peace talks, though bets of higher interest rates after hawkish US Federal Reserve signals weighed on the metal's outlook.
Spot gold was up 0.8% at $4,194.99 per ounce, as of 0608 GMT, after falling to its lowest level since June 11 on Friday. US gold futures for August delivery fell 0.8% to $4,213.10.
The first round of talks between high-ranking US and Iranian officials in Switzerland ended Monday, with an Iranian foreign ministry spokesperson saying good progress has been made, according to Iran's Press TV.
A joint statement from mediating nations Qatar and Pakistan said the US and Iran agreed to a roadmap toward a final deal within 60 days.
"The current situation in Switzerland is quite different from a few hours ago when the two sides were squabbling, but now it seems they're making some progress," said Edward Meir, an analyst at Marex.
"We're going to be trading on geopolitical guidelines for a little while longer, but the situation is fluid so perhaps best to watch the action from the sidelines for now."
Brent crude futures fell more than 1% after the announcement. Elevated oil prices stoke inflation concerns and raise expectations of higher interest rates. Gold tends to lose appeal when rates are high, as it does not yield interest.
Meanwhile, Fed Chair Kevin Warsh's emphasis on inflation in last week's press conference, without any more-nuanced commentary about what might clear the bar for a rate hike, led investors to conclude an increase was coming soon.
Nine of the Fed's 19 policymakers believe they will need to raise the policy rate this year.
Traders see an 89% chance of a rate hike in December, from 61% before the Fed's meeting, according to the CME FedWatch Tool.
Spot silver rose 2.4% to $66.48 per ounce, platinum gained 0.7% to $1,675.91, and palladium was up 1.8% at $1,280.45.
Lebanese Products Return to Saudi Market with Aims to Exceed Pre-2021 Figureshttps://english.aawsat.com/business/5286714-lebanese-products-return-saudi-market-aims-exceed-pre-2021-figures
Lebanese Products Return to Saudi Market with Aims to Exceed Pre-2021 Figures
Saudi Ambassador to Beirut Fahd Al-Dosari and officials from both countries at Beirut port at the launch of Lebanese exports to Saudi Arabia. (SPA)
Lebanese products are once again entering the Saudi market, carrying with them more than just goods and commodities; they carry a message of confidence that has been rebuilt after years of pause, and an economic opportunity that Lebanon has been eagerly awaiting.
The return of the Saudi market - which alone represents about 85 percent of the size of the Gulf market - is not only a restoration of what was lost when exports reached about $378 million before the 2021 ban, but also opens the door to greater ambitions to expand the Lebanese presence in this vast market.
This strategic shift is supported by advanced digital inspection mechanisms that meet current requirements, confirming that the transition to the greater Gulf market is no longer based on intentions, but on compliance with strict standards that ensure the stability and preservation of this historic partnership.
On Saturday, the "whistle" sounded from Beirut for the return of Lebanese exports to the Kingdom, after a long ban of five years, which was imposed following widespread smuggling of contraband to the Kingdom.
Rabih el-Amine, Chairman of the Lebanese Executives Council, an economic and social gathering that includes a group of elite Lebanese professionals residing in the Kingdom and Gulf countries, told Asharq Al-Awsat that the return of Lebanese exports to the Kingdom is a step that goes beyond its direct commercial dimension.
"In essence, it is a restoration of trust, which represents the real capital in any sustainable economic relationship," he stressed.
"With this decision, Beirut is regaining its gateway to the most important export markets of all, bringing life back to its productive sectors in agriculture and industry, and hope to thousands of farmers in the Bekaa, the south, and the north, as well as to the factories that have survived in the most difficult conditions," he added.
He said the ban was lifted "at a time when the country's economy needs everything that drives it forward and secures job opportunities and the flow of hard currency."
Trade exchange
As for the Kingdom, el-Amine said that the decision, which came in implementation of the directives of Prince Mohammed bin Salman, Crown Prince and Prime Minister, and in response to the request of Lebanese President Joseph Aoun and Prime Minister Nawaf Salam, "embodies a firm Saudi position in support of Lebanon's stability and sovereignty over all its territory."
"It confirms that Beirut is regaining its role as a reliable partner whose territory is not used as a launching pad to harm its brothers," he stated.
"More importantly, this return was not based on intentions, but on concrete measures, from modern scanning devices in the ports of Beirut and Tripoli to the joint control mechanism that allows the port of Jeddah to view the results of the inspection as soon as the goods pass through," he explained.
Rabih el-Amine, Chairman of the Lebanese Executives Council.
He revealed that the Kingdom topped the Lebanese export markets before the ban. "In 2014 and 2015, it ranked first with about 12 percent of our total exports, with a value of about 378 million dollars in 2014, according to data from the Lebanese Customs and the Chamber of Commerce, while bilateral trade was estimated at hundreds of millions of dollars annually."
"The 2021 decision reduced this presence to almost zero. Our share in the Saudi market fell to about 3 percent in 2021, while the Kingdom's exports to Beirut continued and reached about $870 million in 2024, which reveals the size of the imbalance that we are seeking to correct today," el-Amine remarked.
The ambition, as expressed by PM Salam, is "not only to restore the figure to what it was before the ban, but to surpass it," he continued.
"The Saudi market alone represents about 85 percent of the size of the Gulf market, and if we offer a high-quality, competitively priced product, we can double our share, not just regain it," he noted.
Export products
Agricultural and food products top Lebanon's exports to Saudi Arabia, such fruits and vegetables including apples, grapes, citrus fruits, cherries, and potatoes, as well as food industries and canned products.
These are commodities linked to production, processing, and marketing chains that employ thousands of families. In addition, there are high-value Lebanese categories that the Kingdom has consistently imported, from jewelry and precious metals to cosmetics, essential oils, and some industrial and pharmaceutical products.
Plastics and their products lead Saudi exports to Lebanon, followed by petroleum products, fuel, and mineral oils, then pharmaceutical and processed foodstuffs.
Demands of the Saudi market
El-Amine said that the Lebanese Executives Council provides exporters with an accurate reading of the Saudi market and its requirements, in terms of specifications, standards, compliance and logistics services.
"We connect Lebanese companies with their potential partners through bilateral meetings, delegations and forums, and we accompany entrepreneurs in preparing their products to the level of quality that this market deserves," he added.
He called for protecting and preserving this step in the long term through two tracks. "The first is to tighten security measures at crossings and borders in a way that prevents any recurrence of what led to the ban; and the second is to harmonize tax and financial procedures between the two countries," he suggested.
"It is the responsibility of the Lebanese exporters themselves to align their products with the specifications and standards adopted in the Kingdom, as the quality of the product and its compliance with the standards are its permanent pass to this market," he stressed.
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