BDL introduces new circular allowing check payments and transfers

The Banque du Liban (BDL) has released a new circular with the number 165, which allows depositors to pay by check from their account, make transfers from one bank to another, and use their debit cards.

This will be effective starting June 1, provided the account is in fresh US dollars or Lebanese lira.

To facilitate these transactions, the BDL will establish a new clearing system, separate from the existing one reserved for deposits held in the bank before the crisis.

According to banking sources, the purpose of this circular is to regulate banking activities and revive the economy.

On the one hand, it encourages opening new accounts in both Lebanese lira and US dollars to inject liquidity into the banks. On the other hand, it helps reduce reliance on cash in the country.

However, some experts have criticized this initiative, arguing that it is illegal because it legitimizes the distinction between newly deposited funds and old funds without legal obligations.

They are also questioning the fate of old deposits.

Given the lack of trust in banks, what guarantees that the newly injected funds will not evaporate and that the same scenario will not be repeated?

In conclusion, this is a patchwork solution added to previous measures, as the state has failed to implement any radical plan for the recovery of the banking sector. The state has not passed banking restructuring or capital controls laws, leaving citizens' trapped funds at risk of disappearing.