A bundle of American dollars. (Credit: Illustration photo/L'Orient Today)
As Lebanon edges closer to the end of a tumultuous year, Banque du Liban (BDL) has announced an increase in withdrawal limits under its principal circulars no. 158 and 166 for January — the third consecutive monthly adjustment. These circulars, introduced to partially mitigate the banking restrictions imposed since the onset of the economic crisis in 2019, aim to provide depositors with limited access to their funds.
Under the updated measures, depositors will be permitted to withdraw double their usual amounts, in line with an exemption first implemented last October. This exemption allows account holders to access 'fresh' dollars from their frozen dollar accounts.
For depositors benefiting from circular no. 158, those who subscribed before June 30, 2023, will be entitled to withdraw $800 in January, up from $400. Those who joined after this date will see their monthly limit rise from $300 to $600.
Similarly, beneficiaries of circular no. 166 will be able to withdraw $300 in January, compared to the usual $150.
This extension of the exemption was formalized in two new circulars — no. 720 and 721 — as outlined in a statement issued by BDL’s press office. The central bank cited the ongoing “circumstances” in the country as justification for the decision, just one month after a cease-fire between Hezbollah and Israel came into effect.
'Preserve liquidity' to ensure economic and social growth
The central bank also reiterated its commitment to "preserve liquidity to ensure the foundations of economic and social growth," as outlined in Article 70 of the Monetary and Credit Code. This decision was approved by BDL's central council on Dec. 24.
The withdrawal procedures remain unchanged, at least for the time being. While the exemption is set to expire in January, it has already been extended multiple times since October. According to BDL, 431,448 depositors have benefited from the two mechanisms since their inception, collectively withdrawing $3.24 billion.
Circulars No. 158 and 166, which are valid until June 2025 unless revised, are among the measures introduced by BDL since the banking crisis began five years ago. These circulars aim to offset the illegal restrictions banks imposed on ‘lollar’ accounts opened before the end of 2019.
Circular No. 158, first published on June 8, 2021, has been extended three times. Under its terms, depositors who subscribed before June 30, 2023, are entitled to withdraw $400 per month (up to $4,800 annually, with a total cap of $50,000). Those who subscribed after this date are permitted to withdraw $300 per month (or $3,600 annually).
With the exemption, they have been able to withdraw a total of $2,800 since October — $1,200 in the first month (three times the initial amount), followed by $800 in both November and December.
With the exemption, they have been able to withdraw a total of $2,800 since October — $1,200 in the first month (three times the original amount), followed by $800 in both November and December.
Circular No. 166, published on Feb. 3, 2024, replaces Circular No. 151. It allows depositors not eligible under Circular No. 158 to withdraw $150 per month in ‘fresh’ dollars, with a total cap of $4,350. Thanks to the exemption, these depositors have been able to withdraw $1,050 between October and December — $450 in the first month, followed by $300 in November and December.
The funding for these exemptions is shared between the banks and BDL. The central bank’s foreign currency reserves decreased by over half a billion dollars between the end of September and mid-December, although they show a 9.1% increase compared to mid-December 2023, according to BlomInvest.
