Lebanon's Central Council is set to convene in the next two days

The Central Council is set to convene in the next two days to deliberate on the future of Circular 151, contemplating discontinuing the fixed exchange rate of LBP 15,000 per US dollar.

Sources confirm to "Nidaa Al-Watan" newspaper that the budget was approved when the state revenues, obtained in dollars (from the port and airport, and such), were converted at this rate to be included as revenues in Lebanese lira, with increases approved at 60 times the original value in various budget items.

Sources emphasized that the current market rate would apply to bank transactions and withdrawals, as the acting Banque du Liban (BDL) governor refuses to continue forced deductions from deposits (haircuts).

They stated, "The ball is back in the government and parliament's court because banks will assert their stance, refusing to adopt the market rate for withdrawals and budgets."

The sources added, "Hence, there is an urgent need to pass legislation to regulate this, or else we will witness intense confrontations between depositors and banks, with the government and parliament bearing responsibility."

The insiders explained to "Nidaa Al-Watan" that the DL would not issue a specific directive on the exchange rate. Still, it would consider a proposal to allow depositors to withdraw $150.

They confirmed a divergence of opinions within the Central Council on this matter, with one faction encouraging the proposal while another deems the amount insufficient. The latter suggests a more prudent approach, maintaining the status quo on haircuts pending the enactment of legal measures to restructure banks and restore balance to the financial system.