Banking and financial sources confirm to "Al-Markaziah" that the Central Bank of Lebanon is inclined to extend Circular 158 for another year. This circular stipulates exceptional measures regarding cash withdrawals from bank accounts in foreign currencies, allowing withdrawals of up to $400 in cash and $400 in Lebanese pounds at an exchange rate of 12,000 Lebanese pounds to one dollar. This circular is considered one of the most important issued by the Central Bank for several reasons: first, it regulates the parallel market by injecting more dollars; second, it provides depositors access to some of their funds in foreign currencies; third, it restores deposits for small depositors; fourth, it prevents the implementation of a haircut on dollar withdrawals; fifth, it offers additional funds for citizens facing financial difficulties; and sixth, it reduces the number of accounts held at banks for small depositors.
The sources reveal that similar to Circular 161, which the Central Bank extended until the end of May, it will extend Circular 158 for another year due to its benefits for small depositors and its role in stabilizing the dollar exchange rate in the parallel market. However, they believe that the Central Bank cannot continue relying on these circulars that deplete its foreign reserves unless political officials take action and begin a reform process. In any case, these sources urge the Central Bank to take the necessary steps to extend the effectiveness of the circular so that depositors will request its extension.
