BDL lowers Sayrafa monthly withdrawal limit

Banque du Liban reduced the monthly dollar withdrawal limit on its Sayrafa platform, two separate sources confirmed to L’Orient-Le Jour Monday.

The limit had been fixed since late spring at $500 "fresh" per month, but was reduced to $400 per month. Funds can be withdrawn and converted at the counter or via ATMs, according to the terms that banks are free to set.

"Fresh" dollars refers to "real" dollars deposited in cash or transferred from abroad to accounts specifically protected by BDL Circular No. 150 of April 2020. They coexist with "bank dollars" — or "lollars," as experts call them — which refer to currency that is blocked by the banking sector since the onset of the economic crisis and cannot be withdrawn as is by depositors. These restrictions have yet to be regulated by a capital control law.

Banking institutions were notified by email of the limit change, according to the two sources, one of whom works in the financial sector and the other in the banking sector. A spokesperson for BDL was not immediately available to confirm the change and to whether the measure would apply to the salaries of civil servants and the social aid they receive, as reported by the daily An-Nahar.

It is certain, however, that the operations allowed by Circular No. 161 — which allows account holders to convert a certain amount in "fresh" dollars — will be affected by the new BDL limit.

Adopted in December 2021, Circular No. 161 allows for an exception to the banking restrictions that prevent depositors from accessing their accounts in foreign currency. It authorizes banks to provide cash dollars to their customers by converting funds from their accounts at BDL’s Sayrafa rate, which is systematically lower than that of the foreign exchange market but changes according to the level of the national currency in the market. The Sayrafa rate was set at LL29,800 to the dollar as of Monday afternoon, while the market rate hovered around LL37,000.

BDL provides the exchanged dollars to banks directly at the Sayrafa rate, sourced from Lebanon’s foreign exchange reserves. The exact level of the reserves is unknown, but is believed to be less than $10 billion dollars.

Circular No. 161 is not the only adjustment to BDL’s restrictions. Circular No. 151 allows for withdrawal of bank dollars at a rate of LL8,000 to the dollar and Circular No. 158 authorizes monthly withdrawals from restricted accounts of $400 in cash and the equivalent amount in lira, converted at a rate of LL12,000 to the dollar.

Finally, over-the-counter dollar withdrawals were de facto compromised when banks closed their branches last week in response to a series of holdups by depositors challenging the banking restrictions.

This article was originally published in French in L'Orient-Le Jour.