Lebanon Businessnews News
 

Banks exempted from reserves
on fresh transfers and deposits
Depositors to benefit from full

withdrawals and normal bank services

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The local banks will be exempt from mandatory reserve requirements and from other compulsory placements at the Central Bank (BDL) against ‘fresh money’ transfers to the banks by their customers from abroad in foreign currencies, according to a BDL circular.

The banks will also benefit from this exemption against cash deposits from their clients whether in lira or foreign currencies.

To benefit from these exemptions the banks must allow the owner of the funds (transferred from abroad or paid in cash), to use them freely in all kinds of banking transactions including transfers abroad and cash withdrawals as well as payment card operations.

The banks must use accounting procedures to track these transactions that the owner of the funds is allowed to perform.

All these exemptions and conditions remain valid even if the client decides to convert the ‘fresh money’ into another currency or transfer them to another local bank.

The first exemptions will be accounted for starting from April 30, 2020 to May 6, 2020.
Reported by Shikrallah Nakhoul
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Date Posted: Apr 09, 2020