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2021-08-26 | 13355

Facilities that may be granted by BDL to banks and financial institutions

Banque du Liban issued Central Decision No. 13355 to amend Central Decision No. 6116, requiring banks and financial institutions to settle specific import-related percentages in Lebanese Lira at designated exchange rates. The amended decision mandates that oil derivative imports be settled using the Sayrafa platform rate, while other essential goods like wheat, medicines, and infant formula use the official 1507.5 Lira-to-dollar rate. Furthermore, it requires banks to deposit these cash amounts at Banque du Liban to secure the foreign currency necessary for ongoing import operations under current exceptional economic conditions.

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Central Circular No. 593 To Banks and Financial Institutions

We present to you, attached to Central Decision No. 13355 dated August 26, 2021, a copy of Central Decision No. 6116 dated March 7, 1996 (Facilities That May Be Granted by Banque du Liban to Banks and Financial Institutions), attached to Central Circular No. 23.

Beirut, August 26, 2021 Governor of Banque du Liban Riad T. Salam

Central Decision No. 13355 Amending Central Decision No. 6116 dated March 7, 1996

The Governor of Banque du Liban, Pursuant to the Monetary and Loan Law, particularly Article 70 thereof, And pursuant to Central Decision No. 6116 dated March 7, 1996 and its amendments concerning the facilities that Banque du Liban may grant to banks and financial institutions, And in order to secure foreign currency for import operations under the current exceptional circumstances, In addition to decisions of the Central Council of Banque du Liban taken during its meetings held on August 11, 2021 and August 23, 2021, Has decided as follows:

Article One: The text of Paragraph (1) under Section "First" of Article Fourteen of Central Decision No. 6116 dated March 7, 1996 is repealed and replaced with the following text: "The value of invoices specifically for the importation of oil derivatives (gasoline, fuel oil, gas)."

Article Two: The text of the repeated Section "Sixth" under Article Fourteen of Central Decision No. 6116 dated March 7, 1996 is repealed and replaced with the following text: "The client shall settle the percentage required to be covered under this article according to the concerned bank in Lebanese Lira as follows:

  • A. The exchange rate specified on the electronic platform for foreign exchange operations 'Sayrafa' regarding oil derivatives (gasoline, fuel oil, gas).
  • B. The exchange rate specified for Banque du Liban's transactions with banks (1507.5 Lebanese Lira per one US Dollar) regarding other goods: wheat, medicines, medical supplies, infant formula up to one year of age, and medical materials used in pharmaceutical manufacturing. The concerned bank is required to deposit these amounts in cash (banknotes) at Banque du Liban in order to secure the foreign currency required for the importation process."

Article Three: This decision shall take effect upon its issuance. Article Four: This decision shall be published in the Official Gazette. Beirut, August 26, 2021 Governor of Banque du Liban Riad T. Salam

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