Central Bank of Lebanon Circular No. 553: Amendment to the Executive Regulation of Law No. 347/2001 on Money Dealers

Circular No. 553

For Money Exchange Institutions

We enclose for your information the amendment to the Executive Regulation of Law No. 347 dated 6/8/2001 concerning the Regulation of the Money Dealer Profession, attached to the Basic Decision No. 7933 dated 27/9/2001.

Subject of the Circular: Basic Circular for Money Exchange Institutions No. 3

Beirut, April 27, 2020

Governor of the Central Bank of Lebanon

Riad T. Safadi

Central Bank Decision No. 13223

Amendment to the Executive Regulation of Law No. 347/2001 on the Regulation of the Money Dealer Profession Attached to Basic Decision No. 7933 dated 27/9/2001

The Governor of the Central Bank of Lebanon,

Having regard to the Monetary and Discount Law, particularly Article 70 thereof,

And having regard to Law No. 347 dated 6/8/2001 concerning the Regulation of the Money Dealer Profession in Lebanon, particularly Articles 13, 16, 18, 19, and 20 thereof,

And having regard to Basic Decision No. 7933 dated 27/9/2001 and its amendments concerning the Executive Regulation of Law No. 347/2001 on the Regulation of the Money Dealer Profession,

And noting the unexplained sharp increase in the exchange rate of the US Dollar against the Lebanese Lira in recent days,

And considering it necessary to regulate the exchange operations conducted by money exchange institutions to protect the stability of the Lebanese Lira's exchange rate, thereby preserving social stability and the purchasing power of Lebanese citizens, particularly those with limited incomes,

And considering that it is imperative to take measures to prevent the exploitation of the freedom of trading in foreign currencies,

Acting on the powers vested in the Governor without the need for the presence of the Acting Governor of the Central Bank of Lebanon,

Based on the principle of the continuity of the public service,

Decides as follows:

Article One: The following "Article Eighteen" is added to the Executive Regulation of Law No. 347/2001 on the Regulation of the Money Dealer Profession attached to Basic Decision No. 7933 dated 27/9/2001:

"Article Eighteen: All money exchange institutions are required, under the threat of applying legal and administrative penalties, particularly those stipulated in Articles 16, 18, and 20 of Law No. 347 dated 6/8/2001 against violators:

1. To sell the US Dollar against the Lebanese Lira at a maximum price not exceeding 1,507.5 L.L.

2. To refrain from conducting any exchange operation that does not take into account the maximum price mentioned in item 1 of this Article, or any amendment thereto, according to the market rate determined by the Special Unit at the Directorate of Monetary Operations in the Central Bank of Lebanon, which is responsible for trading in foreign currencies and established by Basic Decision No. 13216 dated 3/4/2020.

3. Not to adopt margins between the selling and buying prices of foreign currencies that deviate from customary practices."

../..

Article Two: This Decision shall be effective for a period of 6 months from the date of its issuance.

Article Three: This Decision shall be published in the Official Gazette.

Beirut, April 27, 2020

Governor of the Central Bank of Lebanon

Riad T. Safadi