Read on Twitter
I cannot find the circular on BdL website. But I will assume it is legit.
What does it mean?
60% of depositors have accounts less than 5Million LBP for a total of approximately $1B.
Here are my immediate thoughts on this circular:
See thread
https://twitter.com/MTVLebanonNews/status/1246036564846796802
What does it mean?
60% of depositors have accounts less than 5Million LBP for a total of approximately $1B.
Here are my immediate thoughts on this circular:
See thread
https://twitter.com/MTVLebanonNews/status/1246036564846796802
1-Depositors with small LBP accounts will suddenly double their buying power
2-Depositors with small USD accounts will be able to bypass the defacto capital controls
3-For a maximum aggregate of $1B USD given in LBP, the banking problem of the majority of depositors is resolved
2-Depositors with small USD accounts will be able to bypass the defacto capital controls
3-For a maximum aggregate of $1B USD given in LBP, the banking problem of the majority of depositors is resolved
4-The circular has a condition that the whole value of the account must be withdrawn. This will limit customers at banks significantly.
5-On aggregate this will be a dip in a bucket for BdL and banks balance sheets while resolving a problem for a big chunk of the population.
5-On aggregate this will be a dip in a bucket for BdL and banks balance sheets while resolving a problem for a big chunk of the population.
6-Politically this circular will be used as "Protecting the small depositor" and will calm down a big portion of the voting base
7-In this crisis this will give many people with financial difficulty some breathing room.
7-In this crisis this will give many people with financial difficulty some breathing room.
8-No physical USD will be handed out and all transactions will be done in LBP. No need to tap into the Exchange Offices USD base.
9-Who is left to criticize the banking system? 40% of the depositors. Are these the people who will put street pressure on the system?
9-Who is left to criticize the banking system? 40% of the depositors. Are these the people who will put street pressure on the system?
