For the first time since the start of the lebanese financial crisis, the Central Bank of Lebanon refers to a Market Currency Exchange Rate.

On April 3, 2020, the Central Bank of Lebanon issued two decisions that refer to Market Currency Exchange Rate.

1) Decision n˚13215 requires banks to:

• Allow the withdrawal of the total amount of all deposits not exceeding 5 000 000 LBP after converting these amounts to United States Dollars at the rate set by the Central Bank (1507.5 LBP = 1 $) and reconverting the converted amounts to LBP at the market currency exchange rate.
• Allow the withdrawal of the total amount of all deposits not exceeding 3000 USD after converting these amounts to LBP at the market currency exchange rate.
• Make daily declarations of the applicable market currency exhcange rate.
• Apply the rate set by the Central Bank (1507.5 LBP = 1 $) to all other operations.
• Apply the aforementioned provisions for a period of 3 months from the date of issuance of the aforementioned decision.

2) Decision n˚1321 provides for:

• The creation of a new foreign exchange unit within the Financial Operations Department of the Central Bank tasked with foreign exchange trading at the market currency exchange rate.
• The creation of an electronic currency exchange rate information platform.