Depositors allowed to
withdraw $800 per month
Half in fresh dollars, and half in liras
Mandatory reserves cut to 14 percent
Banks are required to allow their customers to withdraw up to $400 per month from their foreign currency deposits in addition to an equivalent amount in lira at the exchange rate of the Sayrafa platform, according to a statement by the Central Bank (BDL).
BDL’s Central Council has also decided to reduce the banks’ compulsory placements in foreign currencies from 15 percent to 14 percent.
The decision applies to accounts that were outstanding in October 2019. The banks will be paying in the first year from their accounts with correspondent banks abroad which range between $1 billion and $1.2 billion. They will also be able to withdraw liquidity from BDL against their compulsory placements.
The accounts of nearly 800,000 bank clients could be fully settled in one year after this decision becomes effective, according to Salameh. This represents 70 percent of the total number of deposit accounts.
The two decisions, unanimously approved by BDL’s Central Council, will become effective starting in July. A circular will be subsequently issued to outline implementation details.
BDL said that withdrawals in lira will increase the money supply in one year by up to LL27 trillion.
Date Posted: Jun 04, 2021