The Monetary Reserve Requirement and Minimum Special Reserve and Required Investments of Islamic Banks

Central Bank Circular No. 732 for Banks

We enclose herewith a copy of Interim Decision No. 13713 dated March 27, 2025, concerning the amendment of Basic Decision No. 9763 dated November 9, 2007 (The Monetary Reserve Requirement and Minimum Special Reserve of Islamic Banks and their Required Investments), attached to Basic Circular No. 113.

Beirut, March 27, 2025 Acting Governor of the Central Bank of Lebanon Dr. Wissam Mansouri

Interim Decision No. 13713 Amending Basic Decision No. 9763 dated November 9, 2007

The Governor of the Central Bank of Lebanon, Pursuant to the Monetary and Exchange Law, particularly Articles 70 and 174 thereof, And pursuant to Basic Decision No. 9763 dated November 9, 2007, and its amendments regarding the Monetary Reserve Requirement and Minimum Special Reserve of Islamic Banks and their Required Investments, And pursuant to the decision of the Central Council of the Central Bank of Lebanon taken in its meeting held on March 19, 2025, Decrees as follows:

Article One: The text of Article Five of Basic Decision No. 9763 dated November 9, 2007 is repealed and replaced by the following text: "All Islamic banks operating in Lebanon shall deposit with the Central Bank of Lebanon a rate of 11% instead of 14% of the components, in foreign currencies, as specified in Form No. (-20RO) attached. The difference resulting from this reduction shall be used exclusively by the Central Bank of Lebanon to ensure liquidity required under the provisions of Basic Decision No. 13335 dated June 8, 2021 (Basic Circular No. 158) and Basic Decision No. 13611 dated February 2, 2024 (Basic Circular No. 166)."

Article Two: This decision shall take effect upon its issuance. Article Three: This decision shall be published in the Official Gazette.

Beirut, March 27, 2025 Acting Governor of the Central Bank of Lebanon Dr. Wissam Mansouri