Region

Jurisdiction

Regulator

1993-09-17 | 5258

Opening Foreign-Currency Deposit Accounts at the Banque du Liban

The Banque du Liban issued Basic Decision No. 5258 to authorize banks, financial institutions, and legally authorized persons to open foreign-currency current and term deposit accounts at the central bank. The decision exempts account holders from administrative fees, mandates daily interest rate determinations aligned with global market trends, and reduces term deposit interest rates by 90% payable in the originating currency. Additionally, it excludes these accounts from risk-weighted capital adequacy ratios under Decision No. 6939, assigns implementation to the Current Operations Directorate, and incorporates recent amendments updating interest calculations and administrative responsibilities effective January 2026.

Lebanon

Banque du Liban

35 Text / Section / 1 R / 14 T - 6-31 / 2025 Basic Circular for Banks No. 14 Also addressed to Financial Institutions

We inform you regarding Basic Decision No. 5258 dated September 17, 1993, concerning the opening of foreign-currency deposit accounts at the Banque du Liban.

Beirut, September 17, 1993 Governor of the Banque du Liban Riad Salamé Old Number 1193

Basic Decision No. 5258 Concerning the Opening of Foreign-Currency Deposit Accounts at the Banque du Liban

The Governor of the Banque du Liban, Pursuant to the Monetary and Loan Law, particularly Article 76 (clause w), Article 81 (paragraph 6), and Article 98 thereof, And pursuant to the Central Council Decision taken during its meeting held on August 4, 1993, And in order to activate Lebanon's role as a financial operations hub in the region,

Decrees as follows:

Article One: Foreign-currency current or term deposit accounts may be opened at the Banque du Liban for banks, financial institutions, and persons authorized by applicable Lebanese laws and regulations.

Article Two: The holders of the aforementioned accounts are exempt from paying any fees.

Article Three: The Banque du Liban shall pay interest on these accounts, with rates determined according to global interest rate developments.

Article Four: The Banque du Liban shall determine the rates of this interest daily.

37 Text / Section / 1 R / 14 T - 6-31 / 2025 1 Article Four bis: Interest on foreign-currency term deposits placed at the Banque du Liban by banks operating in Lebanon shall be reduced by 90% and paid in the same currency in the current account held by the concerned bank at the Banque du Liban, excluding "cash funds".

Article Five: With respect to banks, the risk-weighted capital adequacy ratios set forth in Basic Decision No. 6939 dated March 25, 1998, shall not apply to the aforementioned foreign-currency deposit accounts.

3 Article Six: The Current Operations Directorate is tasked with implementing the provisions of this Decision, in coordination with other relevant directorates at the Banque du Liban.

Article Seven: This Decision shall be published in the Official Gazette and shall take effect immediately upon its issuance.

Beirut, September 17, 1993 Governor of the Banque du Liban Riad Salamé

This article was added pursuant to Interim Decision No. 13157 dated December 4, 2019 (Interim Circular No. 536), and subsequently amended by Article One of Interim Decision No. 13789 dated December 30, 2025 (Interim Circular No. 749), which takes effect as of January 1, 2026.

This Decision repealed Decision No. 5064 dated August 12, 1992, which originally appeared in the text and was replaced by it.

This article was repealed pursuant to Article Four of Decision No. 5702 (Circular 1288 - old numbering), whose Article Six assigned the Current Operations Directorate to replace the Foreign Exchange and External Relations Directorate regarding the implementation of Basic Decision 5258. Thus, practically, this article was amended within Basic Decision 5258 rather than being repealed.