Lebanon’s Central Bank Leads Way for Banking, Monetary Reforms

Lebanese depositors are seen at in a sit-in in Beirut last week. (EPA)
Lebanese depositors are seen at in a sit-in in Beirut last week. (EPA)
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Lebanon’s Central Bank Leads Way for Banking, Monetary Reforms

Lebanese depositors are seen at in a sit-in in Beirut last week. (EPA)
Lebanese depositors are seen at in a sit-in in Beirut last week. (EPA)

Lebanon’s Central Bank opened a segment of deposits that was “not eligible” for full recovery, according to the applicable government description, to monthly withdrawals in cash dollars

This was accompanied with a decision obliging operating banks to adopt the exchange rate announced on the electronic platform in preparing periodic budget statements and transferring asset accounts and monetary liabilities that are denominated in foreign currencies.

The two measures were announced in circulars signed by Acting Governor Wassim Mansouri, numbered 166 and 167 respectively, and issued together over the weekend.

According to concerned sources the move represents a double and preventive step that requires complementary initiatives by the Ministry of Finance after the recent approval of the general budget.

A senior banking official contacted by Asharq Al-Awsat said the features of the executive and legislative roadmap for the desired rescue and recovery plan may continue to take shape following five years of lingering financial and banking crises.

The circular, which was published on Saturday, allows monthly withdrawals of $150 from some accounts opened by depositors after Oct. 31, 2019 to convert Lebanese pound savings into dollars.

According to the banking official, this decision will achieve relative equality among depositors.

Mansouri was keen to begin the circular with the phrase: “Without prejudice to the right of depositors to recover their deposits.” The circular will be effective starting February until mid-2024, with the possibility of renewal.

Unlike previous decisions, the two measures were approved following long consultations with the Association of Banks.



Türkiye Submits Draft Proposal to Iraq to Renew, Expand Energy Agreement

FILE PHOTO: A general view of oil tanks at Türkiye's Mediterranean port of Ceyhan, some 70 km (43.5 miles) from Adana February 19, 2014./File Photo
FILE PHOTO: A general view of oil tanks at Türkiye's Mediterranean port of Ceyhan, some 70 km (43.5 miles) from Adana February 19, 2014./File Photo
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Türkiye Submits Draft Proposal to Iraq to Renew, Expand Energy Agreement

FILE PHOTO: A general view of oil tanks at Türkiye's Mediterranean port of Ceyhan, some 70 km (43.5 miles) from Adana February 19, 2014./File Photo
FILE PHOTO: A general view of oil tanks at Türkiye's Mediterranean port of Ceyhan, some 70 km (43.5 miles) from Adana February 19, 2014./File Photo

Türkiye has submitted a draft proposal to Iraq to renew and expand an energy agreement between the two countries to include cooperation in oil, gas, petrochemicals and electricity, an Iraqi oil ministry official told the state news agency late on Monday.

The statement came after Ankara announced the end of a decades-old agreement covering the Kirkuk-Ceyhan oil pipeline.

"The Ministry of Oil is in the process of reviewing the draft agreement sent by the Turkish side and negotiating with them regarding it to reach a formula that serves the interests of Iraq and Türkiye", the Iraqi oil ministry official added.

The 1.6 million barrel-per-day Kirkuk-Ceyhan pipeline has been offline since 2023 after an arbitration court ruled Ankara should pay $1.5 billion in damages for unauthorized Iraqi exports between 2014 and 2018. Türkiye is appealing the ruling.

Türkiye still wants to revive the oil pipeline with Iraq, a senior Turkish official told Reuters earlier on Monday.

In a decision published in its Official Gazette on Monday, Türkiye said the existing deal dating back to the 1970s - the Türkiye -Iraq Crude Oil Pipeline Agreement - and all subsequent protocols or memorandums would be halted from July 27, 2026.

Iraq and Türkiye have been working to resume oil flows from the pipeline. Ankara said in late 2023 that the pipeline was ready to receive Iraq's oil but talks between Baghdad, Iraq's Kurdistan Regional Government and independent oil producers were not able to reach an agreement on terms.

The Turkish official said the pipeline had the potential to become a "highly active and strategic pipeline for the region".

The person added that Türkiye had invested heavily in its maintenance, and noted its importance for regional projects like the Development Road - a planned trade route involving Türkiye and Iraq.

"A new and vibrant phase for the Iraq- Türkiye pipeline will benefit both countries and the region as a whole," the Turkish official said, without giving details of what Ankara wanted the new agreement to include.

Türkiye sees the Development Road initiative - a high-speed road and rail link, running from Iraq's port city of Basrah on the Gulf to the Turkish border and later to Europe - as an opportunity to extend the pipeline further south. Baghdad allocated initial funding for the project in 2023.