Regulatory Alerts2024-09-25 | 13668Exceptional Measures for the Gradual Withdrawal of Foreign Currency Deposits
The Central Bank of Lebanon issued Circular No. 709 to amend Decision No. 13335 by introducing a one-time, exceptional withdrawal mechanism for additional foreign currency deposits held in Lebanese banks. The measure mandates that banks withdraw specified amounts (LBP 600 and LBP 420) from these deposits, suspend the withdrawal for the fiscal year ending June 30, 2025, and deposit the funds into designated special accounts within one month of publication. The Central Bank retains full authority to determine applicable conditions, adjust mandatory exceptional measures, and manage the offsetting of these additional deposits.
Central Bank Circular No. 709
To the Banks
Reference is made to Central Bank Decision No. 13668 dated September 25, 2024, concerning the amendment of Basic Decision No. 13335 dated June 8, 2021 (regarding exceptional measures for the gradual withdrawal of foreign currency deposits), attached to this Circular as Basic Decision No. 158.
Beirut, July 25, 2024 Governor of the Central Bank of Lebanon Wassim Mneimneh
Central Bank Decision No. 13668
Amending Basic Decision No. 13335 dated June 8, 2021
The Governor of the Central Bank of Lebanon,
Having reviewed the relevant laws and regulations, particularly Articles 70 and 174 thereof, Having considered Basic Decision No. 13335 dated June 8, 2021 and its amendment concerning the exceptional measures for the gradual withdrawal of foreign currency deposits, In light of the prevailing exceptional circumstances and taking into account the recommendations of the Monetary Policy Committee, based on Central Bank Decision No. 13668 dated September 25, 2024,
Has decided as follows:
Article 1: Amendment of Basic Decision No. 13335 dated June 8, 2021
Article 1 is amended by adding the following paragraph (4):
Banks and financial institutions,
- Exceptionally and for a single time, banks shall withdraw the additional deposits in foreign currencies according to the following:
a. This applies to banks that opened foreign currency accounts before the date of this decision, September 25, 2024.
b. The withdrawal will be suspended for the current year ending June 30, 2025, as follows:
- LBP 600 for banks under paragraph (1) of the added paragraphs hereof.
- LBP 420 for banks under paragraph (2) of the added paragraphs hereof.
c. The amount withdrawn from additional deposits in foreign currency will be deposited into a special account opened by the bank within one month of the decision's publication.
d. The withdrawal from additional foreign currency deposits is subject to the Central Bank’s determination for special accounts opened by banks, and the conditions of the account in which it was withdrawn will apply.
e. The withdrawal from additional foreign currency deposits is subject to the mandatory exceptional measures for banks by the Central Bank of Lebanon, and the latter will determine this.
Article 2: This Decision takes effect upon its publication.
Article 3: This Decision is published in the Official Gazette.
Beirut, July 25, 2024 Governor of the Central Bank of Lebanon Wassim Mneimneh