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Banque du Liban announces that Circular 151 that allows depositors to withdraw from their local dollar accounts at a rate of LL3,900 will remain in force
Depositors can continue to withdraw from their so-called local dollar, or “lollar,” accounts at a rate of LL3,900 to the greenback, Banque du Liban Governor Riad Salameh said on Thursday.
The statement reverses an announcement from Wednesday that customers would have to withdraw from their accounts at the official rate of about LL1,500 to $1 — an effective haircut of 88 percent on their initial deposits, as the lira is currently trading at about LL13,000 to the greenback on the parallel exchange market.
At the heart of BDL’s erratic policy is a provisional decision on Monday by the State Shura Council, Lebanon’s highest administrative court, that said deposits in dollar accounts should be reimbursed to their account holders in dollars. Until a final ruling is made, the council suspended BDL Circular 151, which allowed commercial banks to pay out dollar deposits at the lollar exchange rate, calling it unlawful.