The front-piece of the BDL headquarters in Beirut's Hamra district. (Credit: João Sousa)
BEIRUT — The Banque du Liban (BDL) on Friday instructed banks to halt the additional payments granted to customers under Circulars No. 158 and 166, which had been introduced as an exceptional measure during the war. A BDL source told L’Orient-Le Jour that the decision marks "a return to normal"—meaning an end to the extra payments provided since October 2024—"until a new government is formed, with which discussions will be started to increase monthly payments."
The exemption, in place since October, was set to end in February. This decision concludes a four-month period (October-January) during which customers were allowed to withdraw amounts higher than initially planned, under intermediary Circulars No. 717 and 718. In November, December and January, withdrawals were permitted at twice the monthly limit, while in October, BDL authorized withdrawals equivalent to three months' worth of payments. In December, BDL’s interim governor, Wassim Manssouri, justified these exceptional measures, citing "emergency circumstances," particularly the two-month war between Hezbollah and Israel from late September to late November.
The funding for these exemptions has been shared between the banks and BDL. While the BDL's foreign exchange reserves dropped by more than half a billion dollars from late September to mid-December, they showed a 9.1% increase compared to mid-December 2023, according to BlomInvest. Since their introduction, 431,448 depositors have benefited from the two mechanisms, withdrawing a total of $3.24 billion, BDL reported in late December.
As of mid-January 2025, the BDL's foreign currency reserve assets stood at $10.34 billion, a slight increase from $10.13 billion at the end of 2024, according to the latest figures from Byblos Bank’s weekly report. By mid-December 2024, reserves had been at $10.18 billion.
Circulars 717 and 718
Circulars No. 158 and 166, which are valid until June 2025 unless amended, are part of the BDL’s ongoing response to the banking crisis that began five years ago. These mechanisms were introduced to partially offset the illegal restrictions imposed by banks on "lollar" accounts opened before late 2019.
Published on June 8, 2021, Circular No. 158 has been extended three times. Depositors who subscribed before June 30, 2023, can withdraw $400 per month (up to $4,800 annually, with a total cap of $50,000), while those who subscribed afterward are limited to $300 per month (or $3,600 annually). With the exemption, depositors have been able to withdraw a total of $2,800 since October — or $1,200 in the first month (three times the initial amount), and $800 per month in November, December, and January.
Circular No. 166, published on Feb. 3, 2024, replaced Circular No. 151 and allows depositors who do not qualify for Circular No. 158 to withdraw $150 in "fresh" dollars per month (with a total cap of $4,350). Thanks to the exemption, these depositors were able to withdraw $1,050 between October and December: $450 in the first month, followed by $300 in November and December.
The ceasefire that began on Nov. 27, 2024, and was extended until Feb. 18, 2025, ended war between Israel and Hezbollah. Among the key tasks for the next government will be restructuring Lebanon’s banking system, which has been stalled since the onset of what the World Bank considers one of the three worst economic crises in the world since the mid-19th century. Once formed, the government will also need to appoint a new governor for the central bank, BDL, and oversee the banks' supervisory commission.
This article was originally published in French in L'Orient Le-Jour.
