Lebanon grants limited access to bank deposits amid crisis

SourceArabian Business
SectorFinancial Services
CountryLebanon

Move comes nearly 20 months after banks denied them access as a result of the crippling financial crisis

Lebanon’s central bank has revealed that depositors will be allowed to withdraw limited monthly amounts from their foreign currency accounts, nearly 20 months after banks denied them access amid a severe financial crisis.

The move is a small step toward instituting formal capital controls after Lebanese banks arbitrarily imposed policies preventing depositors from accessing their dollar accounts even as the local currency collapsed and a black market thrived, said AP.

According to the new central bank circular, depositors will be allowed to withdraw up to $400 a month in cash and another $400 in local currency at a rate eight times higher than the official rate.

The bank said the decision implemented a request by the Shura Council, Lebanon’s top administrative court

The Lebanese pound, pegged to the dollar at 1,515 for more than 20 years, has been crashing since 2019, losing more than 85 percent...read more...