Regulatory Alerts2021-11-03 | 13372Regulatory Rules of Circular 7926 Concerning Banks' Foreign Currency Investments, Monetary Reserve Requirements, Minimum Special Reserves, and Required Investments of Islamic Banks
The Central Bank of Lebanon, via Circular No. 599 and Central Decision No. 13,372 dated November 3, 2021, amends Central Decisions No. 7,935 and No. 9,763 to set a 14% mandatory foreign currency investment ratio for banks, update reserve requirements and minimum special reserves for Islamic banks, and replace their reporting annexes (-10RO and -20RO). The revised framework takes effect from December 2 to December 8, 2021, and standardizes deductions for new accounts, accrued interest, and credit-linked balances across resident and non-resident operations. These adjustments operationalize exceptional monetary measures designed to activate domestic banking activities and support the gradual repayment of foreign currency deposits.
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