The Association of Banks in Lebanon (ABL) addressed on April 1, 2021 a letter to the Central Bank Governor concerning the foreign currency mandatory reserves at BDL. In details, the letter specified that the mandatory reserves were deposited by banks in accordance with the provisions of article 76 of the Lebanese code of money and commerce, with the aim of preserving banking sector liquidity, supporting economic stability and developing the monetary & financial markets, among other things. In this regard, the letter specified that the mandatory reserves must not be used to subsidize the import of goods in any manner. Furthermore, the ABL commented that as deposits at banks dropped, said reserves at BDL currently exceed the required threshold and accordingly, BDL should free a portion of the required mandatory reserves that exceed the required amount to the benefit of Lebanese banks’ accounts outside Lebanon. Finally, the ABL reiterated its support to the Governor’s decision not to use the mandatory reserves for any reason whatsoever in order to preserve depositors’ money and urged the Governor in this regard to make an official and decisive statement about the matter as early as possible.