Alwaght- A detailed report on the Lebanese daily, Al-Akhbar, has tackled the possible economic fallout against the backdrop of the Saudi suspension of a $4 billion dollar aid package to Lebanese security forces and an ensuing travel warning to its citizens. It found that the Saudi campaign against Lebanon is a sum-total of empty threats.
After taking these measures, talk of Gulf governments planning to withdraw their deposits from Lebanese banks emerged, in addition to possible eviction of Lebanese nationals working in these states, and even a halt to air flights from Saudi Arabia to Lebanon.
The report, however, said the threats, those declared and those undeclared alike, have not taken a concrete form and instead remain devoid of worth. It further explained using bank sources that there are no signs of Saudis removing their deposits from Lebanese banks. At worst, bankers told Al-Akhbar that they only make up %2 of the 158 billion dollars in Lebanon’s bank deposits.
Furthermore, Economics Expert Samir Daher told the newspaper that should the Saudis withdraw an enormous amount of money from Lebanon’s banks, it would not pose a danger to the country’s budget as its effects would be inconsequential.
“Why is this deposit still in the Central Bank of Lebanon in the first place? Its monetary and practical influence is insignificant as opposed to the threat of withdrawing it which amounts to a psychological war and such a decision can only be seen from a political point of view,” he said.
Many also fear that such a move aims to create a fake demand on the dollar and plunge the Lebanese pound into a crisis, thus striking the country’s currency.
As for rumours suggesting a halt to Saudi flights to Beirut, Head of Rafik Hariri international airport denied such claims.
The National News Agency quoted Fadi al-Hassan who denied that “airport authorities had received a notice or a request by Saudi Arabian Airlines to stop or halt flights to and from Beirut.”
Another issue that is circulating around the Saudi escalation is the expulsion of Lebanese nationals who work in Persian-Gulf states. Already, countries such as the UAE has done this in light of political disputes. It is estimated that money transfers from Lebanese workers in the Gulf to their families in Lebanon is worth $3 million. If this inflow stops, it would result in a socio-economic dilemma.
However, amid all these concerns, one thing is clear and that is Riyadh’s attempt to put on a show of power and wave empty threats at the Lebanese public. But no matter how much the Saudis try to instil fear of an economic crisis in Lebanon, the fact remains that it is a highly unlikely scenario.
