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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)
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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.

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Three Saudi-Yemeni Companies Established in Energy, Telecom to Support Yemen's Reconstruction

The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)
The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)
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Three Saudi-Yemeni Companies Established in Energy, Telecom to Support Yemen's Reconstruction

The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)
The Saudi-Yemeni Business Council holds meeting in Makkah, announces strategic initiatives (Asharq Al-Awsat)

The Saudi-Yemeni Business Council, part of the Federation of Saudi Chambers, announced six initiatives to boost trade and support Yemen’s economic development at a meeting in Makkah, Saudi Arabia.
Over 300 Saudi and Yemeni investors attended, agreeing to establish three companies to help rebuild Yemen and improve its infrastructure.
The initiatives include upgrading border crossings to improve logistics and increase trade, currently valued at 6.3 billion riyals ($1.6 billion). Yemen’s exports to Saudi Arabia, worth only 655 million riyals ($174.6 million), highlight untapped potential in mining, agriculture, livestock, and fisheries.
Key recommendations to enhance trade and support Yemen’s economic recovery include setting up quarantine facilities for Yemeni livestock and agricultural products to increase exports, as well as building smart food cities near border areas to improve food security and sustainable cooperation.
The Council urged action to address banking challenges faced by traders, suggesting reforms in Yemen’s financial sector and stronger ties with Saudi banks. It also proposed creating a club for Yemeni investors in Saudi Arabia to encourage joint projects and partnerships.
Three new Saudi-Yemeni companies will be established. One will invest $100 million in solar energy to provide sustainable electricity in Yemen. Another will focus on boosting telecommunications via Starlink satellite services. The third will organize events to promote Saudi products and support Yemen’s reconstruction.
Speaking to Asharq Al-Awsat, Council President Dr. Abdullah bin Mahfouz emphasized the private sector’s critical role in stabilizing Yemen’s economy and society through investments that support development, create jobs, improve infrastructure, and promote small and medium-sized enterprises (SMEs).
He stressed the importance of empowering Yemeni entrepreneurs and securing funding for reconstruction projects, encouraging public-private partnerships to execute large-scale initiatives under the Build-Operate-Transfer (BOT) model.
The Makkah meeting ended with agreements between Saudi and Yemeni companies to develop key sectors such as energy, agriculture, and infrastructure.
Streamlined customs, improved logistics, and upgraded Yemeni ports and airports were also highlighted as priorities to facilitate trade.
Yemeni delegation leader Abdulmajid al-Saadi, praised Saudi Arabia’s new investment law, noting Yemeni investments in the Kingdom have reached 18 billion riyals ($4.8 billion), ranking third among foreign investors.