Regulatory Alerts2023-07-05 | 13563Exceptional Measures for the Gradual Withdrawal of Foreign Currency Deposits
The Central Bank of Lebanon issued Intermediary Decision No. 13563 to amend Basic Decision No. 13335, establishing updated withdrawal limits and mechanisms for foreign currency deposits held in Branch Special Accounts. The revised framework permits monthly withdrawals of $400 for pre-July 2023 transfers and $300 for post-June 2023 transfers, payable in cash, via international transfer, or through domestic and foreign bank cards and new accounts, with annual caps of $4,800 and $3,600 respectively. Furthermore, the decision mandates that banks replenish their 3% foreign liquidity ratio by December 31, 2024, and applies proportionally to joint or affiliated accounts for a renewable one-year term effective July 1, 2023.
Intermediary Circular No. 674 to Banks
We present, in connection with Intermediary Decision No. 13563 dated July 5, 2023, concerning the amendment of the Basic Decision (a copy of which is attached to Intermediary Circular No. 158, dated June 8, 2021: "Exceptional measures for the gradual withdrawal of foreign currency deposits").
Beirut, July 5, 2023 Governor of the Central Bank of Lebanon Riad T. Salamé
Intermediary Decision No. 13563 Amendment of Basic Decision No. 13335 dated June 8, 2021
The Governor of the Central Bank of Lebanon, Pursuant to the Monetary and Banking Law, particularly Articles 70 and 174 thereof, Pursuant to the provisions of Basic Decision No. 13335 dated June 8, 2021, and its amendments regarding exceptional measures for the gradual withdrawal of foreign currency deposits, Pursuant to the decision of the Central Council of the Central Bank of Lebanon taken in its meeting held on June 27, 2023, Decrees as follows:
Article 1: The text of "First" from Article One is repealed and replaced with the following: « First: Withdrawals shall be made from "Branch Special Accounts" opened at all banks up to an annual maximum amount of $4,800 USD, according to the following:
- $400 USD monthly from funds transferred to these accounts before July 1, 2023, paid in cash ("Banknotes") to the account holder and/or transferred abroad and/or via bank cards usable in Lebanon and abroad and/or deposited into a new account ("Account Fresh"), without any direct or indirect commission or fee of any kind being charged on this operation, and the total amount withdrawable annually under Item (1) shall not exceed $4,800 USD from all banks.
- $300 USD monthly from funds transferred to these accounts after June 30, 2023, paid in cash ("Banknotes") to the account holder and/or transferred abroad and/or via bank cards usable in Lebanon and abroad and/or deposited into a new account ("Account Fresh"), without any direct or indirect commission or fee of any kind being charged on this operation, and the total amount withdrawable annually under Item (2) shall not exceed $3,600 USD from all banks.
- In the event that one or more persons benefit from joint or affiliated accounts under Items (1) and (2), the amounts specified in these items shall be paid proportionally (Prorata), i.e., according to the share of funds transferred to "Branch Special Accounts" from these joint or affiliated accounts. »
Article 2: The text of "First" from Article Two is repealed and replaced with the following: « First: Banks may, to secure the liquidity required under this decision, utilize their available foreign currency liquidity within the 3% ratio referred to in Basic Decision No. 13262 dated August 27, 2020 (Intermediary Circular No. 154), provided that this ratio is replenished by no later than December 31, 2024. »
Article 3: This decision takes effect from July 1, 2023. The conditions of Basic Decision No. 13335 dated June 8, 2021, as amended by the present decision, shall apply for a period of one year, renewable or modifiable. The funds that can be transferred to "Branch Special Accounts" shall remain valid.
Article 4: This decision shall be published in the Official Gazette.
Beirut, July 5, 2023 Governor of the Central Bank of Lebanon Riad T. Salamé