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2020-04-21 | 13221

Exceptional Measures for Cash Withdrawals from Foreign-Currency Accounts

Banque du Liban issued Basic Decision No. 13221, authorizing Lebanese banks to sell foreign currencies generated from client cash withdrawals or cash desk operations back to the central bank for settlement in Lebanese Lira. The decision establishes a monthly purchase limit of 1/600 USD per account at a fixed rate of 15,000 Lira per US dollar and mandates monthly reporting to the Banks Supervision Commission. All other US-dollar bank-client transactions remain subject to the central bank's prescribed rate, with the decision remaining in force until December 31, 2023.

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Text / Section 1 / Decision No. 151 / Circular dated 31/7/2023 Basic Circular for Banks No. 151

We enclose a copy of Basic Decision No. 13221 dated April 21, 2020, concerning exceptional measures regarding cash withdrawals from foreign-currency accounts.

Beirut, April 21, 2020 Governor of Banque du Liban Riad T. Salamé

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Basic Decision No. 13221

Exceptional Measures Regarding Cash Withdrawals from Foreign-Currency Accounts

The Governor of Banque du Liban, pursuant to the Monetary and Loan Law, particularly Articles 70 and 174 thereof, and in safeguarding the public interest under the current exceptional circumstances facing the country, and based on the powers vested in the Governor to ensure the operation of Banque du Liban according to the principle of public service continuity,

hereby decides as follows:

1 Article 1: Without prejudice to the concept of cash as defined in Article 1 of Basic Decision No. 13548 dated April 19, 2023, banks operating in Lebanon may sell to Banque du Liban foreign currencies resulting from cash withdrawals or cash desk operations requested by any client (natural or legal person) from accounts or receivables denominated in US dollars or other foreign currencies, which are settled, with the concerned client's consent, in Lebanese Lira. Banque du Liban purchases the foreign currencies subject to this Article within a maximum limit equivalent to 1/600 USD per account monthly, based on a rate of 15,000 Lebanese Lira per US Dollar.

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  • This Article was last amended pursuant to Article 1 of Interim Decision No. 13562 dated July 5, 2023 (Interim Circular No. 673).

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Text / Section 1 / Decision No. 151 / Circular dated 31/7/2023 Article 2:

Article 3: The concerned bank shall report to the Banks Supervision Commission, monthly, the value of foreign currencies resulting from the operations referred to in Article 1 above.

Article 4: All other US dollar operations conducted by banks with their clients remain subject to the rate set by Banque du Liban in its dealings with banks.

Article 5: The provisions of this Decision shall take effect upon its issuance and remain valid until December 31, 2023. Article 6: This Decision shall be published in the Official Gazette.

Beirut, April 21, 2020 Governor of Banque du Liban Riad T. Salamé

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  • This Article was repealed by Article 4 of Interim Decision No. 13253 dated August 4, 2020 (Interim Circular No. 565), and originally read: 'Each bank shall announce daily the market rate applied by it.' 2
  • This Article was amended by Interim Decision No. 13464 dated July 27, 2022 (Interim Circular No. 636). 3
  • This Article was repealed by Article 2 of Interim Decision No. 13377 dated December 9, 2021 (Interim Circular No. 601), and subsequently reinstated by Interim Decision No. 13393 dated December 27, 2021 (Interim Circular No. 610). 4
  • The application of this Decision was extended several times, most recently until December 31, 2023, pursuant to Article 2 of Interim Decision No. 13562 dated July 5, 2023 (Interim Circular No. 673). The initial duration was originally six months from the date of its issuance.
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