The acting governor of the Central Bank of Lebanon (BDL), Wassim Mansouri, communicated on Saturday the amendments made to Circular 151 through a new circular, Circular 166.
Following Friday’s meeting of the BDL Central Council, Mansouri announced two decisions concerning the repayment of foreign currency deposits and the conversion of foreign currency-denominated assets and receivables into Lebanese pounds.
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In addition to amending Circular 151, the Central Bank approved the authorization to allow depositors who are not beneficiaries of Circular 158 to withdraw $150 in greenbacks.
The maximum cost of this new circular would be $300 million a year, to be shared between the banks and BDL on the basis of $150 million.
Furthermore, the unified exchange rate, currently set at “89,500 LBP for one dollar,” will impact the budgets of the banks. Most of them will need to inject new funds. This is also related to laws on capital control, bank restructuring, and financial normalization.
However, the government and Parliament have been delaying the adoption of these laws since 2020, revealing the blatant failure of both authorities to address the crisis.
