The Lebanese Central Bank issued on October 9, 2020 intermediate circular 573 related to the facilities granted by the Central Bank to banks and financial institutions. As per the circular, banks must demand clients who are willing to import goods to settle the required threshold in LBP banknotes at the applicable exchange rate specified by the Central Bank in its transactions with banks of LBP 1,507.5 per U.S. Dollar. Subsequently, the concerned bank must then deposit said amount at the Central Bank in the form of banknotes in order to secure the required foreign currency to conduct the import operation.

In a related news, the Association of Banks in Lebanon issued a press release on October 15 clarifying that the latest measures taken by BDL are temporary and needed to cope with the exceptional conditions Lebanon is currently facing. The press release also added that said measures aim at curbing inflation and the frantic rise in prices, without tampering the domestic market’s liquidity needs. Finally, the press release called citizens to use different payment channels such as credit cards, checks, and bank transfers.