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.
