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People Flock To ATMs As 3900 Rate Hangs In The Balance
Perpetual tension appears to be the theme in Lebanon as of late, and the newest chapter is another haircut on people’s bank deposits.
Yesterday, Lebanon’s Central Bank suspended circular 151 which allowed depositors to withdraw their USD at the rate of 3,900 LL as opposed to 1,500 LL. This rate is still a tremendous haircut when compared to the market rate of 13,000 LL to the dollar.
This suspension came after Lebanon’s top administrative court, The Lebanese State Shura Council, ruled that withdrawals at 3900 LL are illegal, and that banks should allow their customers to withdraw the money in US Dollars.
Of course, in typical manipulative fashion, Lebanon’s Central Bank rushed to suspend the circular, threatening to force people to use their money at the outdated rate of 1,500 LL.
Many are presuming that pressures will result in the Council reverting back on this decision, despite the fact that it was intended on helping citizens get their money in foreign currency.
Nevertheless, as news of this broke, citizens flocked to ATMs around the country to make use of the already devalued rate in fear of a worse one awaiting them in the morning.
Protestors also gathered at the Ring and closed it momentarily last night as this news was circulating.
And remember:
Life in #Lebanon
— Houshig K. (@houshigk) June 2, 2021
2 different queues on the Jal al-Dib highway at 9PM today: one to get rationed gas from a fuel station & one to get cash from an almost empty ATM pic.twitter.com/wdUk9UzUBl
Yesterday, Lebanon’s Central Bank suspended circular 151 which allowed depositors to withdraw their USD at the rate of 3,900 LL as opposed to 1,500 LL. This rate is still a tremendous haircut when compared to the market rate of 13,000 LL to the dollar.
This suspension came after Lebanon’s top administrative court, The Lebanese State Shura Council, ruled that withdrawals at 3900 LL are illegal, and that banks should allow their customers to withdraw the money in US Dollars.
Of course, in typical manipulative fashion, Lebanon’s Central Bank rushed to suspend the circular, threatening to force people to use their money at the outdated rate of 1,500 LL.
Another blow for depositors who have $ accounts: central bank suspended circular 151; banks will now stop paying LL3900 for each $ (which was already a haircut on deposits) & return to official rate 1500LL (massive haircut) #Lebanon
— Zeina Khodr (@ZeinakhodrAljaz) June 2, 2021
Many are presuming that pressures will result in the Council reverting back on this decision, despite the fact that it was intended on helping citizens get their money in foreign currency.
Just a reminder that at the current parallel market exchange rate of L13,100:
— Omar Tamo (@OmarTamo19) June 2, 2021
– You receive a 70% haircut if you withdraw at LL3,900
– You receive an 88.5% haircut if you withdraw at LL1,500
Watch out for what you ask for while protesting a decision
Nevertheless, as news of this broke, citizens flocked to ATMs around the country to make use of the already devalued rate in fear of a worse one awaiting them in the morning.
People wait to withdraw money from ATM machine in #Beirut #Lebanon as central bank said it will stop withdrawals at 3,900 LP to the US dollar compared with official rate of 1,500. Black market rate is 13,000 pounds to $ pic.twitter.com/ZCowCfUAuO
— Bassem Mroue باسم مروه (@bmroue) June 2, 2021
Protestors also gathered at the Ring and closed it momentarily last night as this news was circulating.
# # pic.twitter.com/pJqMxNAHsd
— (@Akhbaralsaha) June 2, 2021
And remember:
3900 was already a shit deal
— Beirut.com (@BeirutCityGuide) June 2, 2021
