- 15:55
Depositors have reason to celebrate as the Central Bank of Lebanon (BDL) is expected to raise withdrawal limits in “fresh dollars” under Circulars No. 158 and No. 166 before the end of the year. According to reliable BDL sources contacted by This is Beirut, calculations on the cost of these exceptional measures are in their final stages, making the release of the new circulars imminent.
Political disputes have delayed the adoption of the law addressing the country’s “financial gap.” In the meantime, the BDL aims to reimburse bank deposits, at least gradually and partially, within the limits of available funds.
Under the upcoming adjustments, account holders eligible under Circular No. 166 will see their monthly withdrawal limit rise from $400 to $500 in fresh dollars. For those under Circular No. 158, the limit will increase from $800 to $1,000.
Circular No. 166 applies to all depositors, individuals, and businesses who converted their deposits from Lebanese pounds (LBP) into foreign currency after October 30, 2019, without benefiting from any other circular. Circular No. 158 covers holders of foreign currency accounts opened before October 19, 2019, who are also ineligible for other measures.
Overall, approximately 340,000 depositors are expected to benefit from these two measures, with around 180,000 under Circular No. 158 and 160,000 under Circular No. 166.
The total monthly cost of implementing these measures is estimated at $260 million, up $52 million from the current level. On an annual basis, this represents an increase from $2.5 billion to $3.12 billion, or an additional $624 million.
The BDL will bear the largest share, roughly covering $180 million per month, or $2.1 billion per year. Commercial banks will contribute $33 million per month, or $400 million annually, financing half of the effects of Circular No. 158 but not those of Circular No. 166. The BDL deducts this contribution directly from the banks’ Lebanese pound accounts held with it.
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