BDL issued on 5 July 2023 two intermediate Circulars. Intermediate Circular 673 extends Basic Circular 151 to 31/12/2023. The circular permits clients to exchange every month their USD deposits at commercial banks for a maximum amount of 1,600 USD at the official exchange rate of 15,000 LBP. BDL has kept the amount and the rate intact so as not to increase the money supply and avoid the adverse effects of that on the market exchange rate.
In addition, Intermediate Circular 674 amends Basic Circular 158. It eliminated the $400 that clients used to withdraw annually every month from their “special designated accounts” of USD at the official exchange rate of 15,000. The intention of this amendment is to reduce the haircut that clients are subject to, given that the market exchange rate is currently at close to 91,000 LBP. However, the Circular kept the $400 in monthly cash that clients could get from their special USD designated accounts that were opened before 1/7/2023 till the amounts are exhausted for an annual total of maximum $4,800. But for money transferred to these accounts after 1/7/2023, the eligible monthly cash withdrawal is reduced to $300 for an annual total of maximum $3,600.
Moreover, for Intermediate Circular 674, BDL stipulated that banks can use the increase in their external liquidity by 3% that was set into effect in Basic Circular 154 to pay for these cash USD withdrawals, on the condition that the paid amounts are to be replenished by banks by 31/12/2024. Also, the circular is effective for a year, subject to extension or change, starting from 1/7/2023.