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Source: Dubai – Arabia.net
The governor of the Central Bank of Lebanon, Riad Salameh, said that his country has foreign exchange reserves of 19.5 billion dollars in addition to gold reserves, noting that 30% of the money that left the Lebanese banks must be returned.
On Tuesday, Salameh added that banks that do not comply with the latest directives on capital rates will have to exit the market after February.
He explained that the Central Bank will not use the mandatory cash reserve, highlighting that the latest decisions on bank requirements will help stabilize the lira exchange rate.
At the end of last week, the Central Bank of Lebanon informed local banks to cover losses of 45% on their holdings of Treasury bonds in foreign currency, according to a Central Bank circular.
An annex to the circular issued on August 26 informed banks to reserve provisions for a 1.89% loss on their deposits in hard currency with the Central Bank, with a maturity of less than one year, without accounting for losses on their holdings. of certificates of deposit in Lebanese pounds.
It gave the banks a 5-year period to set aside the provisions, which could be extended to 10 years, subject to central bank approval.
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