A protester brandishes a handful of Lebanese currency, which has become virtually worthless, outside the Central Bank. AP
A protester brandishes a handful of Lebanese currency, which has become virtually worthless, outside the Central Bank. AP
A protester brandishes a handful of Lebanese currency, which has become virtually worthless, outside the Central Bank. AP
A protester brandishes a handful of Lebanese currency, which has become virtually worthless, outside the Central Bank. AP

Is there life after the Lebanese lira?


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  • Arabic

Is the Lebanese lira dead? For experts interviewed by The National, the answer is yes.

“The damage caused by the currency crisis is irreparable,” said financial expert Mike Azar.

The lira, which was pegged at the rate of 1,500 to the dollar for 22 years, has now lost 98 per cent of its value since the start of Lebanon's economic meltdown.

It has become a virtually meaningless piece of paper that does not perform any of a currency’s functions.

The loss of confidence in the national currency is reflected by the craving for dollars on the market.

This is called “dollar addiction”, which is now pushing the economy towards rampant dollarisation, with a disastrous “socio-economic cost”, Siham Rizkallah, professor of economics at Saint Joseph University, told the National.

“It is creating a Lebanon for USD holders that we see in restaurants, shopping malls, big hospitals and touristic venues versus workers whose incomes are in lira who have become excluded from the socio-economic tissue,” she said.

“Lebanon needs a new exchange rate regime to put an end to the current chaos."

But what are the options?

Some call for a “hard peg”, including dollarisation, where the lira would be completely replaced by the greenback, or a “currency board”, with the introduction of a new national currency guaranteed by FX reserves.

In these fixed-exchange regimes, the central bank cannot turn to monetary creation to finance the fiscal deficit — the very reason that led to the destruction of the Lebanese lira’s value.

Experts agree that giving up on a national currency and monetary sovereignty is never ideal, but it may be inevitable, four years into what the World Bank labelled "a deliberate crisis”.

Bye bye Lira

Economists distinguished different types of dollarisation.

Lebanon has already been experiencing a high level of dollarisation — hovering around 70 per cent of the deposits since the late 1980s, said Ms Rizkallah, which shows a low level of confidence in the lira, even pre-crisis.

After 1993, the country gradually institutionalised a partial dollarisation, which spread unfettered in the economy since the 2019 collapse.

The introduction of a full dollarisation will lead to the abandonment of the national currency, with all the monetary base converted into US dollars at a fixed exchange rate.

“The size of the economy will be adjusted in function of the available reserves,” said Ms Siham.

This will also mean that the budget would be in dollars.

“Lebanon’s public finances lost a lot these past years by taxing in liras profits made in USD,” said Ms Rizkallah.

Lebanese pounds turned into fashion accessories – in pictures

  • Both 250 and 500 Lebanese pound coin bracelets are on display inside a shop in Tripoli, northern Lebanon. All photos: Reuters
    Both 250 and 500 Lebanese pound coin bracelets are on display inside a shop in Tripoli, northern Lebanon. All photos: Reuters
  • Fashion shop owner Rima Mawlawi El Samad shows off the range of coin bracelets.
    Fashion shop owner Rima Mawlawi El Samad shows off the range of coin bracelets.
  • Grocery shop owner Antoine Saab puts 250 and 500 Lebanese pound coins into a jar, in Beirut.
    Grocery shop owner Antoine Saab puts 250 and 500 Lebanese pound coins into a jar, in Beirut.
  • Rima Mawlawi El Samad wears a necklace and earrings at her shop.
    Rima Mawlawi El Samad wears a necklace and earrings at her shop.
  • Coins to be made into jewellery.
    Coins to be made into jewellery.
  • Jewellery maker Nisrine Dassouki Haffar works on a bracelet in Tripoli.
    Jewellery maker Nisrine Dassouki Haffar works on a bracelet in Tripoli.
  • Antoine Saab with two jars full of Lebanese pound coins at his shop in Beirut.
    Antoine Saab with two jars full of Lebanese pound coins at his shop in Beirut.

“The use of a stable currency will bring back the confidence of the economic agents, attracts capital and investment,” she said.

In this scenario, the central bank's role will shrink considerably as it loses its monetary sovereignty.

“This primarily refers to a central bank’s role in managing the level of interest rates or the value of the currency based on local economic conditions. With dollarisation, countries no longer have control over monetary policy,” said Mr Azar.

“But has Lebanon ever really exercised monetary sovereignty in the first place?”

For French economist Jean-Francois Ponsot, dollarisation is advisable if the central bank's monetary policies were harmful to the currency.

He said that in Ecuador, a case he researched, where oligarchic groups used the central bank for their own interests, the full dollarisation adopted in 2000 was a way to end the “incestuous relationship” between the central bank, lenders and the oligarchs.

But, experts agree, dollarisation needs to be accompanied by a reform plan.

“It needs a complete restructuring of the banking system," Mr Ponsot said. "Their balance sheets will be converted into foreign currencies at the chosen conversion rate."

Lebanese banks have more foreign currency liabilities — which they list in Lebanese lira at a discounted rate, rather than as foreign currency assets. Therefore the dollarisation of their balance sheets will force some to recognise bankruptcy. “In Ecuador, 20 banks had to close,” Mr Ponsot said.

Authorities will have also to deal with the issue of loss allocation, and decide which mechanisms will be mobilised to bail out depositors, whose savings have been locked since 2019.

In Ecuador, the entire dollarisation process took nine months, he said.

Don’t print if you can’t cover it

The currency board is another form of hard pegs, which requires the national currency to be 100 per cent covered by the equivalent in foreign exchange reserves.

In this scenario, a new Lebanese currency will be created and pegged at a fixed exchange rate.

Economist Nikolay Nenovsky, one of the architects of the currency board introduced in 1997 in Bulgaria, pressed strongly for a Lebanese version during a webinar organised by Lefmi, a network of researchers.

He warned against the strong financial and political dependence to the US that comes with dollarisation, in a time where the greenback's future itself is uncertain. He also stressed that dollarisation means greater exposition to US sanctions.

But “the problem with the currency board is that the central bank still has some room for manoeuvre, so it can fall back into accounting tricks”, said Mr Ponsot.

'No miracle'

But hard pegs are not all roses.

As the central bank no longer has the possibility to print money to finance government deficits, hard pegs constrained countries to strict budgetary rigour. For the system to work, Lebanon, a country that imports 80 per cent of its goods, would also have to find a stable inflow of dollars.

“There is no miracle solution with a monetary regime,” Mr Ponsot said.

Above all it requires political will.

But in Lebanon, there seems to be very little incentive for the ruling elite to change the current system, as the local currency is deliberately used today only as "a vehicle to pass on the financial losses to the general public through inflation”, Mr Azar said.

On one side, “banks and the central bank are slowly liquidating their US dollar debts, comprised primarily of people’s bank deposits, by converting them into Lebanese pounds in an attempt to restore solvency”, he said.

“Similarly, public sector employees, who have seen the value of their income collapse due to the currency devaluation, are given intermittent payments by the government, also funded by printing local currency.”

This excessive money printing further contributes to debasing the lira and causes it to lose value.

“The government has not undertaken any real reforms to achieve sustainability in the public finances or financial system,” Mr Azar said.

WORLD'S%2010%20HIGHEST%20MOUNTAINS
%3Cp%3E1.%09Everest%0D%3Cbr%3E2.%09K2%0D%3Cbr%3E3.%09Kangchenjunga%0D%3Cbr%3E4.%09Lhotse%0D%3Cbr%3E5.%09Makalu%0D%3Cbr%3E6.%09Cho%20Oyu%0D%3Cbr%3E7.%09Dhaulagiri%0D%3Cbr%3E8.%09Manaslu%0D%3Cbr%3E9.%09Nanga%20Parbat%0D%3Cbr%3E10.%09Annapurna%0D%3C%2Fp%3E%0A
The 12

England

Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur

Italy
AC Milan, Inter Milan, Juventus

Spain
Atletico Madrid, Barcelona, Real Madrid

What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
INDIA SQUAD

Virat Kohli (capt), Rohit Sharma, Shikhar Dhawan, KL Rahul, Vijay Shankar, MS Dhoni (wk), Kedar Jadhav, Dinesh Karthik, Yuzvendra Chahal, Kuldeep Yadav, Bhuvneshwar Kumar, Jasprit Bumrah, Hardik Pandya, Ravindra Jadeja, Mohammed Shami

5 of the most-popular Airbnb locations in Dubai

Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:

• Dubai Marina

The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.

Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739 
Two bedroom: Dh627 to Dh960 
Three bedroom: Dh721 to Dh1,104

• Downtown

Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure.  “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."

Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154

• City Walk

The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena.  “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”

Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809 
Two bedroom: Dh682 to Dh1,052 
Three bedroom: Dh784 to Dh1,210 

• Jumeirah Lake Towers

Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.

Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629 
Two bedroom: Dh549 to Dh818 
Three bedroom: Dh631 to Dh941

• Palm Jumeirah

Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.

Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770 
Two bedroom: Dh654 to Dh1,002 
Three bedroom: Dh752 to Dh1,152 

SPEC%20SHEET%3A%20NOTHING%20PHONE%20(2)
%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%206.7%E2%80%9D%20LPTO%20Amoled%2C%202412%20x%201080%2C%20394ppi%2C%20HDR10%2B%2C%20Corning%20Gorilla%20Glass%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20Qualcomm%20Snapdragon%208%2B%20Gen%202%2C%20octa-core%3B%20Adreno%20730%20GPU%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%208%2F12GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECapacity%3A%3C%2Fstrong%3E%20128%2F256%2F512GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPlatform%3A%3C%2Fstrong%3E%20Android%2013%2C%20Nothing%20OS%202%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMain%20camera%3A%3C%2Fstrong%3E%20Dual%2050MP%20wide%2C%20f%2F1.9%20%2B%2050MP%20ultrawide%2C%20f%2F2.2%3B%20OIS%2C%20auto-focus%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMain%20camera%20video%3A%3C%2Fstrong%3E%204K%20%40%2030%2F60fps%2C%201080p%20%40%2030%2F60fps%3B%20live%20HDR%2C%20OIS%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFront%20camera%3A%3C%2Fstrong%3E%2032MP%20wide%2C%20f%2F2.5%2C%20HDR%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFront%20camera%20video%3A%3C%2Fstrong%3E%20Full-HD%20%40%2030fps%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%204700mAh%3B%20full%20charge%20in%2055m%20w%2F%2045w%20charger%3B%20Qi%20wireless%2C%20dual%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20Wi-Fi%2C%20Bluetooth%205.3%2C%20NFC%20(Google%20Pay)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBiometrics%3A%3C%2Fstrong%3E%20Fingerprint%2C%20face%20unlock%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20USB-C%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDurability%3A%3C%2Fstrong%3E%20IP54%2C%20limited%20protection%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECards%3A%3C%2Fstrong%3E%20Dual-nano%20SIM%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColours%3A%3C%2Fstrong%3E%20Dark%20grey%2C%20white%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20Nothing%20Phone%20(2)%2C%20USB-C-to-USB-C%20cable%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%20(UAE)%3A%3C%2Fstrong%3E%20Dh2%2C499%20(12GB%2F256GB)%20%2F%20Dh2%2C799%20(12GB%2F512GB)%3C%2Fp%3E%0A
The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

AndhaDhun

Director: Sriram Raghavan

Producer: Matchbox Pictures, Viacom18

Cast: Ayushmann Khurrana, Tabu, Radhika Apte, Anil Dhawan

Rating: 3.5/5

The specs: 2018 Peugeot 5008

Price, base / as tested: Dh99,900 / Dh134,900

Engine: 1.6-litre turbocharged four-cylinder

Transmission: Six-speed automatic

Power: 165hp @ 6,000rpm

Torque: 240Nm @ 1,400rpm

Fuel economy, combined: 5.8L / 100km

match info

Maratha Arabians 138-2

C Lynn 91*, A Lyth 20, B Laughlin 1-15

Team Abu Dhabi 114-3

L Wright 40*, L Malinga 0-13, M McClenaghan 1-17

Maratha Arabians won by 24 runs

J%20Street%20Polling%20Results
%3Cp%3E97%25%20of%20Jewish-Americans%20are%20concerned%20about%20the%20rise%20in%20anti-Semitism%3Cbr%3E%3Cbr%3E76%25%20of%20US%20Jewish%20voters%20believe%20Donald%20Trump%20and%20his%20allies%20in%20the%20Republican%20Party%20are%20responsible%20for%20a%20rise%20in%20anti-Semitism%3Cbr%3E%3Cbr%3E74%25%20of%20American%20Jews%20agreed%20that%20%E2%80%9CTrump%20and%20the%20Maga%20movement%20are%20a%20threat%20to%20Jews%20in%20America%22%3Cbr%3E%3C%2Fp%3E%0A
hall of shame

SUNDERLAND 2002-03

No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.

SUNDERLAND 2005-06

Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.

HUDDERSFIELD 2018-19

Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.

ASTON VILLA 2015-16

Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.

FULHAM 2018-19

Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.

LA LIGA: Sporting Gijon, 13 points in 1997-98.

BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66

Blackpink World Tour [Born Pink] In Cinemas

Starring: Rose, Jisoo, Jennie, Lisa

Directors: Min Geun, Oh Yoon-Dong

Rating: 3/5

Rafael Nadal's record at the MWTC

2009 Finalist

2010 Champion

Jan 2011 Champion

Dec 2011 Semi-finalist

Dec 2012 Did not play

Dec 2013 Semi-finalist

2015 Semi-finalist

Jan 2016 Champion

Dec 2016 Champion

2017 Did not play

 

Updated: March 14, 2023, 3:00 AM