BDL sources: Raising withdrawal limits under consideration, reserves belong to depositors

Sources at Banque du Liban (BDL) confirmed that a proposal to raise withdrawal limits under Circulars 158 and 166 is under consideration, but stressed that any decision would not be made in response to pressure from leaked reports.

Instead, the move would require a decision by the central bank's Central Council, based on the amount of money it wants circulating in the market.

The sources said BDL is also seeking to help people cope with an unprecedented rise in living expenses, particularly fuel costs, school tuition fees and other financial burdens.

They added that a decision to increase withdrawal limits would be made at the appropriate time, potentially ahead of the holiday season.

The central bank sources also emphasized that the reserves held at BDL do not belong to the central bank itself but represent commercial banks' reserves deposited with BDL and, ultimately, depositors' money.

They stressed that returning these funds to depositors is not a favor granted by anyone, particularly the central bank.