A large-scale reproduction of an old 1,000 Lebanese lira banknote displayed in the entrance hall of Banque du Liban on Aug. 22, 2025. (Credit: Philippe Hage Boutros)
Lebanon’s central bank, the Banque du Liban (BDL), has extended by one year the implementation of Circulars 158 and 166, introduced respectively in 2021 and 2024 to gradually return part of the foreign-currency deposits that Lebanese banks restricted access to at the start of the 2019 financial crisis.These mechanisms were put in place as an imperfect substitute for the measures provided for under the Money and Credit Code to deal with failing banks — or for a genuine bank resolution law in line with international standards, which should have organized the restructuring of the sector and the restitution of deposits. BDL initiatives Pending banking restructuring, BDL works to open credit market The extension of these mechanisms was formalized through Intermediate Circulars 768 and 769, dated June 4 and available on BDL’s...
Lebanon’s central bank, the Banque du Liban (BDL), has extended by one year the implementation of Circulars 158 and 166, introduced respectively in 2021 and 2024 to gradually return part of the foreign-currency deposits that Lebanese banks restricted access to at the start of the 2019 financial crisis.These mechanisms were put in place as an imperfect substitute for the measures provided for under the Money and Credit Code to deal with failing banks — or for a genuine bank resolution law in line with international standards, which should have organized the restructuring of the sector and the restitution of deposits. BDL initiatives Pending banking restructuring, BDL works to open credit market The extension of these mechanisms was formalized through Intermediate Circulars 768 and 769, dated June 4 and available on BDL’s...
