Key Takeaways:
- Heavy fighting resumed along Lebanon’s southern border after the ceasefire in Gaza lapsed on December 1. Six civilians were killed by Israeli military action in December, bringing the total number of civilian casualties between October 8 and December 31 to 21. Fighting displaced 76,018 people in South Lebanon through January 4, necessitating an increase in educational, health, and basic needs assistance in host communities.
- The Lebanese Parliament extended Lebanese Armed Forces (LAF) Commander-in-Chief Joseph Aoun’s term on December 15, despite strong opposition by the Free Patriotic Movement. Directors of other key state institutions continue to operate on an interim basis, including the General Directorate of General Security and the Central Bank.
- Parliament’s Finance and Budget Committee met seven times in December about the 2024 draft budget law. On December 4, committee members agreed to adjust the consumption tax scale in line with inflation rates and on December 13, the committee approved an expenditure of LBP 1 trillion to finance municipal elections.
- On December 19, the Central Bank increased the Sayrafa exchange rate from LBP 85,500 to LBP 89,500 per USD 1, aligning it with the parallel market rate. This policy was instituted in line with acting Central Bank Governor Wassim Mansouri’s plan to unify and float the official exchange rate.
By Crisis Analytics Team, Mercy Corps Lebanon
