Regulatory Alerts2023-07-24 | 13566Exchange Operations at the Banks and Financial Institutions
The Central Bank of Lebanon issued Intermediary Decision No. 13566 to amend Basic Decision No. 6568 regarding the calculation, limits, and reserve requirements for banks' and financial institutions' open foreign currency positions. The decision mandates that institutions exceeding specified net or total open position thresholds deposit reserves at the Central Bank equal to ten times the excess, calculated using the Sayrafa platform rate and applied for one month per day of non-compliance. It establishes an August 31, 2023 deadline for settling existing excesses based on the Central Bank's official exchange rate, while temporarily suspending provisions related to fixed or structural positions and exempting real estate revaluation gains.
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