LogoRegulatory Alerts
2019-12-04 | 13157

Central 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.

Banque du Liban logo

Lebanon

Banque du Liban

Click to view thumbnail

Circular No. 536

For Banks and Financial Institutions

We enclose herewith a copy of Interim Decision No. 13157 dated 4/12/2019 concerning the amendment of:

  • The Foundational Decision No. 5258 dated 17/9/1993 (Opening of deposit accounts in foreign currency at Banque du Liban) attached to Foundational Circular No. 14.
  • The Foundational Decision No. 7534 dated 2/3/2000 (Issuance of bank certificates of deposit by Banque du Liban) attached to Foundational Circular No. 67.
  • The Foundational Decision No. 13100 dated 3/9/2019 (Opening of bank accounts) attached to Foundational Circular No. 147.

Beirut, December 4, 2019

Governor of Banque du Liban

Riad T. Salamé

Share