Exceptional measures for the gradual withdrawal of deposits in foreign currencies

Circular No. 729

to Banks

We enclose a copy of Intermediary Decision No. 13702 dated 20/02/2025, amending the Basic Decision No. 13335 dated 08/06/2021 (Exceptional measures for the gradual withdrawal of deposits in foreign currencies), attached to Basic Circular No. 158.

Beirut, on 20 February 2025

Governor of the Central Bank of Lebanon
(Acting)

Dr. Wissam Mansouri

Intermediary Decision No. 13702

Amending Basic Decision No. 13335 dated 08/06/2021

The Governor of the Central Bank of Lebanon, pursuant to the Monetary and Exchange Law, particularly Articles 70 and 174 thereof, and based on the provisions of Basic Decision No. 13335 dated 08/06/2021 and its amendments concerning exceptional measures for the gradual withdrawal of foreign currency deposits, and considering the exceptional circumstances currently experienced by the country, and based on the decision of the Central Bank Council taken in its meeting held on 19/02/2025,

hereby decides the following:

Article One: The text of items (1), (2) and (3) under "First" in Article Four of Basic Decision No. 13335 dated 08/06/2021 is repealed and replaced with the following text:
« First: Withdrawals are made from "Subsidiary Special Accounts" as follows:

• 1/ $500 per month, paid in cash ("Banknotes") to the account holder and/or via transfer abroad and/or by means of bank cards usable in Lebanon and abroad and/or deposited into a new account (Account Fresh), without any direct or indirect commission or expense of any kind being charged on this operation, and the total amount that can be withdrawn annually under item (1) from all banks shall not exceed $6,000.
• 2 The annual withdrawal cap from all banks during the current cycle ending on 30/06/2025 is adjusted as follows:
• $7,200 for beneficiaries of the provisions of this decision before 01/07/2023.
• $5,900 for clients who did not benefit from the provisions of this decision before 01/07/2023.
• 3 In the event that two or more persons benefit from joint or affiliated accounts according to this decision, the amounts specified in item (1) of this section are paid proportionally (Prorata), i.e., according to the share each person receives from the amounts transferred to "Subsidiary Special Accounts" from these joint or affiliated accounts.

Article Two: The text of paragraph (b) under item (4) under "First" in Article Four of Basic Decision No. 13335 dated 08/06/2021 is repealed.

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Article Three: The text of Article Five of Basic Decision No. 13335 dated 08/06/2021 is repealed and replaced with the following text:
« Liquidity is secured to meet the requirements of this decision as follows:

• 1 For beneficiaries of the provisions of this decision before 01/07/2023:
  a - Regarding the portion of the monthly payment not exceeding $400, half is funded from the liquidity of the concerned bank held at correspondents abroad and from the foreign currency mandatory investment balances belonging to banks held at the Central Bank of Lebanon, issued by the latter for this purpose. b - Regarding the portion of the monthly payment exceeding $400 in full, it is funded from the foreign currency mandatory investment balances belonging to banks held at the Central Bank of Lebanon, issued by the latter for this purpose.
• 2 For clients who did not benefit from the provisions of this decision before 01/07/2023:
  a - Regarding the portion of the monthly payment not exceeding $300, half is funded from the liquidity of the concerned bank held at correspondents abroad and from the foreign currency mandatory investment balances belonging to banks held at the Central Bank of Lebanon, issued by the latter for this purpose. b - Regarding the portion of the monthly payment exceeding $300 in full, it is funded from the foreign currency mandatory investment balances belonging to banks held at the Central Bank of Lebanon, issued by the latter for this purpose. The "Central Department for Subsidiary Special Accounts" declares that the portion of payments mentioned in this article funded half is separate from the portion fully funded by mandatory investments.

The Central Bank of Lebanon, monthly, transfers the amounts due for each bank complying with this decision from the liquidity available to the Central Bank of Lebanon abroad, under the condition that the concerned bank bears responsibility if these amounts are used for purposes other than those specified in this decision.»

Article Four: This decision takes effect as of 01/03/2025.

Article Five: This decision is published in the Official Gazette.

Beirut, on 20 February 2025

Governor of the Central Bank of Lebanon
(Acting)

Dr. Wissam Mansouri