The Lebanese Central Bank issued on May 10, 2021 intermediate decision 13324 under basic circular 157 which tackled exceptional procedures on foreign currency operations. In details, the basic circular states that banks will automatically participate in the electronic trading platform via a link that will be sent to their IPs by the foreign exchange unit at BDL. The circular further stipulated that banks conducting operations on the platform must input all required information in a prompt and transparent manner on the “Sayrafa” application which is linked to the platform. In this regard, the circular prompted banks to obtain from the client a document that lifts the banking secrecy on the concerned FX operation. The circular also limits the list of operations that banks can conduct on the platform to the following:

-       Purchasing LBP banknotes from the concerned clients in exchange for foreign currency bank notes that can be transferred outside Lebanon or in fresh accounts inside Lebanon, bearing in mind that said accounts can be used to conduct transfers outside Lebanon, cash withdrawals and local & international credit card operations.

-       Purchasing from the concerned clients foreign currency banknotes or from the clients’ foreign currency fresh accounts in exchange for LBP bank notes or account transfers.

The Central Bank however capped the bid-ask spread that banks can achieve on the aforementioned operations at 1% of the purchase price. The circular also conveyed that the Central Bank can interfere on the platform in order to secure a stability in the exchange rate. Finally, the circular stipulated that banks must and on a daily basis input the opening and closing balances on the platform, with the foreign exchange unit at BDL being responsible for verifying said information.