Key Takeaways:
- The conflict between Hezbollah and Israel along Lebanon’s southern border continued throughout January, killing six civilians and causing extensive damage. The rate of Israeli and Hezbollah strikes was in keeping with past months, though Israel expanded the range of its strikes in Lebanese territory and Hezbollah utilized new weapons systems. In early January, a senior member of Hamas and six other people were killed in a presumed Israeli drone strike in Beirut’s southern suburbs.
- The parliament approved the 2024 draft budget law after the Finance and Budget Committee extensively amended it. The amendments resulted in higher projected revenues, increasing the total budget size to USD 3.3 billion. However, the budget’s composition has raised concerns about regressive taxes disproportionately affecting low-income earners and a notable lack of public investment, which comprises 9% of total expenditures.
- On January 10, the Central Bank invited commercial banks to subscribe to the “Bloomberg FX Interbank Matching System”, on which traders can exchange LBP and USD. The rollout of the platform occurred months later than expected due to the conflict in South Lebanon, which delayed the arrival of Bloomberg representatives responsible for training Central Bank and commercial bank officers on the new platform.
- Severe storms swept across Lebanon in mid-January, when flooding washed away temporary shelters and heavily damaged farmland, particularly in northern regions. Nearly 1,800 people were displaced by flooding, prompting public demands to assess damages and issue compensation for losses incurred.
By Crisis Analytics Team, Mercy Corps Lebanon
