Regulatory Alerts2019-12-04 | 13157Central Bank of Lebanon Circular No. 536: Amendments to Regulations on Foreign Currency Deposits, Bank Certificates of Deposit, and Bank Accounts
The Central Bank of Lebanon issued Circular No. 536 to amend three foundational decisions regarding foreign currency deposits, bank certificates of deposit, and the opening of bank accounts. The regulation mandates that interest on foreign currency deposits and certificates of deposit held by banks be paid at 50% in US Dollars and 50% in Lebanese Lira, while capping new deposit interest rates at 5% for foreign currencies and 8.5% for Lebanese Lira. These measures, effective for six months from December 4, 2019, also require banks to reflect these reduced rates in the Beirut Interbank Offered Rate (BIOR) calculations.
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