Banque du Liban's headquarters in Beirut. (Credit: Philippe Hage Boutros./L'Orient-Le Jour)
BEIRUT — Banque du Liban (BDL) has reportedly decided to halve the interest it pays to banks on dollar deposits, two banking sources, including a senior executive, confirmed to L'Orient-Le Jour on Tuesday.
It also plans to half the interest rates on dollar certificates of deposits issued by BDL, according to a copy of a Nov. 1 circular, viewed by L'Orient-Le Jour and confirmed by the two banking sources.
Half of the amounts involved will be paid in dollars, while the other half will be paid in Lebanese pounds, at an unspecified exchange rate.
The banking executive said his company had not yet received a "physical" copy of the circular. The press service of the BDL stressed that the text had not yet been published on the institution's website.
The executive, wishing to remain anonymous because of the sensitivity of the subject, said BDL Governor Riad Salameh informed the banks that he planned to implement the measure. He added that Salameh suggested the dollar portion be paid at the rate of LL15,000 to the dollar— the same rate used in the 2022 budget projections.
A rate of LL15,000 to the dollar was also supposed to replace the official rate of LL1,507.5 as of Nov. 1, but the Finance Ministry has failed to offer specifics on the implementation of such a shift.
According to the text of the circular, the measure it implements was endorsed at a meeting of the BDL's Central Council held last Friday. The text will be enforced after it is published in BDL's Official Gazette, and will be in effect for six months following the date of publication.