Middle East Experience

At least $250 million in UN humanitarian aid intended for refugees and poor communities in Lebanon has been lost to banks selling the local currency at highly unfavorable rates, a Thomson Reuters Foundation investigation has found.The losses -- described in an internal United Nations document as “staggering” and confirmed by multiple sources -- come as Lebanon grapples with its worst ever economic crisis, with more than half the population living under the poverty line, according to the World Bank.For the latest headlines, follow our Google News channel online or via the app.They stem from a plunge in the value of the Lebanese pound since the economy began to collapse in late 2019, sending prices soaring and forcing many Lebanese into poverty.The unfavorable exchange rates offered by Lebanese banks have hit Syrian and Palestinian refugees and poor Lebanese particularly hard as they are able to buy far less with the cash handouts they receive from the UN.Pre-crisis, refugees and poor Lebanese received a monthly payout of $27, equal to about 40,500 Lebanese pounds, from the World Food Program (WFP).That has now risen to about 100,000 Lebanese pounds per person, but its real value is a fraction of what it was before -- about $7 at the current rate.“The buying power used to be very good, we could get an acceptable food basket,” said Abu Ahmad Saybaa, a Syrian refugee who runs a Facebook page that highlights the challenges faced by refugees in Lebanon.“But now (the handouts) can’t get us more than a gallon of cooking oil. There’s a huge difference in purchasing power,” said the father of five, who has lived in a refugee camp in Lebanon’s rugged northeast since 2014.“It’s weighing on all of our health -- mental and physical.”Refugee aidAn aid official and two diplomats from donor countries confirmed that between a third and half of all direct UN cash aid in Lebanon had been swallowed up by banks since the outset of the crisis in 2019. All spoke on condition of anonymity.During 2020 and the first four months of 2021, banks exchanged dollars for UN agencies at rates on average 40 percent lower than the market rate, the aid official said.Lebanon maintains an official exchange rate of about 1,500 pounds to the dollar, but since the crisis has only been able to apply that rate to a handful of essential goods.All other imports have to be bought at much higher exchange rates, resulting in soaring prices.Most of the losses came from a 2020 UN assistance program worth about $400 million that provides around 1 million Syrian refugees in Lebanon with monthly funds for food, education, transport, and winter weather-proofing of shelters.Lebanon is home to over 1 million Syrian refugees, nine in 10 of whom live in extreme poverty, according to UN data.The country received at least $1.5 billion in humanitarian aid in 2020.An internal UN assessment in February estimated that up to half the program’s value was absorbed by Lebanese banks used by the UN to convert donated US dollars.The document, seen by the Thomson Reuters Foundation, said that by July 2020 a “staggering 50%” of contributions were being lost through currency conversion.The Association of Banks in Lebanon (ABL), which represents the country’s commercial banks, denied using aid to raise capital.It said the U.N. could have distributed in dollars, or negotiated a better rate with Lebanon’s central bank.A central bank spokesperson did not respond to a request for comment on the rates provided to humanitarian organizations.Funding shortfallsThe $400 million UN program, known as LOUISE, receives funding from the United States, the European Commission, Germany, the United Kingdom, Canada, the Netherlands and France among others, according to its website.It comprises the WFP, the UN refugee agency (UNHCR) and the UN Children’s Fund (UNICEF).The Thomson Reuters Foundation compared the rates at which the banks converted US dollars in 2020 and 2021 with the concurrent market exchange rates to calculate the amount of aid lost.The losses amounted to about $200 million in 2019 and 2020 and at least $40 million so far in 2021.The figures are in line with the UN internal assessment and were independently verified by an aid official.A UNICEF spokesperson said the agency was “very concerned that recipients receive the full value of cash transfers” and had recently renegotiated to obtain a rate close to the market rate.It is also testing disbursement in dollars for some programs, the spokesperson said.Banque Libano-Francaise (BLF), which was contracted by LOUISE agencies to give out aid, declined to comment on the unfavorable conversion rates, saying it was bound by a confidentiality agreement with them.It also said the agencies could have distributed the money directly in dollars.WFP funding of monthly cash assistance to 105,000 vulnerable Lebanese people, worth some $23 million last year, used the same unfavorable exchange rates, a WFP spokesperson said, meaning up to half of funds were lost to banks.The WFP and UNHCR referred the Thomson Reuters Foundation to the UN humanitarian coordinator’s office, which declined to comment on the reasons for the massive losses.A spokesperson for the UN agency for Palestinian refugees (UNRWA) said between a third and half of the aid it distributed since October 2020 -– up to $7 million -- was lost through currency conversion. The agency has repeatedly warned of funding shortfalls.The documented losses from the LOUISE, WFP and UNRWA programs amount to at least $250 million since October 2019.Following pressure by the UN agencies, the discrepancies between the average market exchange rate and the rate offered by the banks have shrunk, but not disappeared.‘Every cent counts’Confronted with a financial system keen on sucking in as many dollars as possible, donors and UN agencies have struggled to develop a cohesive approach that maintains the full value of aid.In May, a top World Bank official said Lebanon had agreed to disburse the aid from a $246 million World Bank loan to poor Lebanese directly in dollars, but the payouts have been delayed.Dollarization of aid, which was recommended in the February internal assessment and lobbied for by donor countries and independent analysts, would keep the full value of the donations for beneficiaries regardless of fluctuations in currency rates.But Lebanese authorities have resisted efforts to dollarize aid inflows as they seek to maintain control over one of the few remaining sources of hard currency.Meanwhile, donor nations have grown increasingly impatient and fearful of reputational damage tied to the millions in taxpayer money absorbed by banks.“We’ve been more than ready to invest in helping people, but we need a credible counterpart that’s not going to pocket money that we are ultimately accountable for at home,” said one Western diplomat on condition of anonymity.Jad Chaaban, a professor of economics at the American University of Beirut, said international organizations operating in Lebanon often walked a tight line between making compromises in a difficult political environment and holding to standards of accountability.“In this case, it’s unacceptable and there must be much higher standards. We effectively see the same dynamics as contractors or crony businessmen siphoning off money that they received to build a school or infrastructure project,” Chaaban said.“Right now, every cent counts for Lebanon.”Read more:Bail-in for Lebanese bank depositors ‘highly likely’: S&P GlobalLebanese judge orders protective freeze of assets for individuals tied to major banks
Source: Al Arabiya
Full Article: Lebanese banks swallow at least 0m in UN aid for refugees

Turkish President Recep Tayyip Erdogan reportedly told his US counterpart that Ankara won't soften its stance on the Russian S-400 missile systems despite sanctions imposed by Washington over the purchase.
Source: Al Monitor
Full Article: Erdogan tells Biden Turkey won't change position on S-400s

Kuwait will allow non-citizens to enter the country from Aug. 1 if they have been fully vaccinated with COVID-19 vaccines that have been approved by the Gulf state, the government said on Thursday.A PCR test must be taken before flying and another during seven days of home quarantine on arrival.For the latest headlines, follow our Google News channel online or via the app.In decisions carried by state news agency KUNA, Kuwait's cabinet also announced that only citizens who have been fully vaccinated can leave the country from Aug. 1.It also said that from June 27 only vaccinated people would be able to enter restaurants and cafes, health clubs, salons and large commercial spaces.Gulf states including Bahrain, the United Arab Emirates and Saudi Arabia increasingly have been making proof of COVID-19 vaccination a condition of entry to public areas including work spaces, malls and entertainment venues.Read more:Kuwait's economy contracted by 9.9 percent in 2020 amid sharp drop in oil pricesKuwait set to support coronavirus-hit economy amid low oil pricesKuwait approves Johnson & Johnson COVID-19 vaccine
Source: Al Arabiya
Full Article: Kuwait to grant entry of fully COVID-19 vaccinated non-citizens from August 1

The central bank of the United Arab Emirates said the country’s gross domestic product will grow 2.4 percent this year and 3.8 percent in 2022 as the economy recovers from restrictions imposed during the COVID pandemic.Non-oil GDP will expand by around 4 percent in both years, it said in a statement.For the latest headlines, follow our Google News channel online or via the app.“The Targeted Economic Support Scheme has been effective in mitigating the risks posed by the pandemic by ensuring a continued flow of credit and helping affected individuals and companies,” it said, referring to government aid packages to overcome debt repayment difficulties.Read more:Saudi Arabia and the UAE dominate Forbes Top 50 Middle East Banks listRansomware attacks on UAE businesses rose during pandemic: ReportChildren of Abu Dhabi ruling family part of UAE vaccine trial for adolescents
Source: Al Arabiya
Full Article: UAE central bank expects GDP growth as country recovers from COVID restrictions

A multimedia exhibition in Paris offers a rich flashback to a period between the 1920s and the 1970s when many female performers took center stage..
Source: Albawaba
Full Article: The ‘Divas’ Who Serenaded and Seduced the Arab World

US officials have condemned the Iran-backed Houthis for continuing to obstruct progress towards peace in Yemen.US Special Envoy for Yemen Tim Lenderking is in Saudi Arabia this week to follow up on his efforts to broker a ceasefire between the Yemeni government and the Houthis, who have been engaged in a yearslong war.For the latest headlines, follow our Google News channel online or via the app.Despite increased diplomatic efforts by the US and the United Nations, coupled with several regional proposals, the Houthis remain adamant on blocking peace efforts.Lenderking met with Saudi Arabia’s ambassador to Yemen late Wednesday to discuss the Riyadh agreement, which was meant to help reach a solution in Yemen.The US diplomat condemned the “Houthis’ increasingly brutal attacks against civilians in Marib & the Houthis’ obstruction to the peace process,” a tweet from the State Department said.Lenderking also met with the Yemeni premier and expressed hope that the Yemeni cabinet would return to Aden soon. “Lenderking reiterated the importance of the free flow of goods - especially fuel - through Hodeidah port and throughout Yemen.”Read more: Biden’s rushed US policy moves on Yemen could backfire, analysts sayUN envoy suggests studying other options to prevent Yemen tanker spill
Source: Al Arabiya
Full Article: US officials condemn Iran-backed Houthis for blocking peace efforts in Yemen

Iran’s president appealed to voters to set aside their grievances and take part in a presidential election on Friday that record numbers of people are expected to boycott due to economic hardship and frustration with hardline rule.Hardline judiciary chief Ebrahim Raisi and moderate former Central Bank governor Abdolnaser Hemmati are the main contenders after the hardline Guardian Council disqualified several prominent candidates from running and others quit.President Hassan Rouhani, a relative moderate, urged Iranians on Thursday, as campaigning ended, not to let the “shortcomings of an institution or a group” keep them from voting, an apparent reference to the Guardian Council.For the latest headlines, follow our Google News channel online or via the app.“For the time being, let’s not think about grievances tomorrow,” Rouhani said in televised remarks.Supreme Leader Ayatollah Ali Khamenei has already urged people to turn out in large numbers, saying that would help avert foreign pressures on the Islamic Republic.Official opinion polls suggest turnout could be as low as 41%, significantly lower than in past elections.In addition to anger over the disqualification of prominent moderates, grievances include economic hardship exacerbated by US sanctions as well as official corruption, mismanagement and a crackdown on protests in 2019 triggered by rising fuel prices.The accidental shooting down of a Ukrainian plane in Iran in January last year which killed 176 people also undermined public trust.“Voting would be an insult to my intelligence,” 55-year-old Fatemeh said, declining to give her second name for fear of reprisals. “Raisi has already been selected by the government regardless who we vote for.”Prominent dissidents inside and outside the country have called on fellow Iranians to snub the election, including exiled former crown prince Reza Pahlavi and opposition leader Mirhossein Mousavi, under house arrest since 2011.On the other hand, many leading reformists have rallied behind Hemmati, including former President Mohammad Khatami, arguing that a massive boycott would guarantee a Raisi win.Under the Iranian Constitution, the supreme leader, elected for life and responsible for choosing six of the 12-member Guardian Council, holds most of the powers of the state.Khamenei has the final say on all matters of state and sets Iran’s foreign and nuclear policies.The vote would have no impact on indirect talks between Tehran and Washington on reviving the 2015 Iran nuclear deal, the top Iranian negotiator, Deputy Foreign Minister Abbas Araqchi told Al Jazeera on Thursday.Polling stations open at 7 a.m. local time and close at 2 a.m. on Saturday. The interior minister told state TV that due to the Covid-19 pandemic, voting will take place outside at 67,000 sites across the country, with social distancing and the donning of face masks. Voters are asked to bring their own pens.
Source: Al Arabiya
Full Article: Iran urges voters to set aside grievances, take part in presidential election

Top stories on #TheRoundUp today: 🇮🇷 GCC wants in on Iran nuclear talks 🚨 New York thief arrested after crashing stolen Qatar consulate car 🩺 Qatar’s health ministry rejects rumoured “ban” on online medical advice 🇵🇸 Zara responds after days of boycott calls..
Source: Albawaba
Full Article: The Round Up | 17 June 2021 – Doha News | Qatar

Hamas chief Ismail Haniyeh will meet Morocco’s main opposition party on Thursday as part of a visit to build support for the Palestinian cause despite the country’s recent diplomatic accord with Israel..
Source: Albawaba
Full Article: In Morocco, Hamas chief seeks wider support for Palestinians

My Swiss sojourn started with a few small towns and cities that allowed me to soak in the beauty of nature that I rounded off at Zurich, one of the l….
Source: Albawaba
Full Article: WKND Travel: The intriguing medieval past of Zurich