Public Actions

State Shura Council suspends Banque du Liban Circular 151 that allows depositors to withdraw from their local dollar accounts at a rate of LL3,900

Date: 
Monday, May 31, 2021

State Shura Council declared that 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.  With banks almost certainly unable to reimburse dollar deposits amid Lebanon’s economic crisis, the circular’s suspension means banks would pay out accounts at the official exchange rate of about LL1,500 to $1, at least in the interim term. Customers would have to withdraw from their accounts at the — an effective haircut of 88 percent on their initial deposits.

 

 

Acting Bodies: 
State Council
Type: 
Judicial Decisions
Categories: 
Economic measures (State budget, rent law, wages...)
Impact: 
National
Status: 
On Hold
Civil Society Response: 
Contested