With currency fluctuations, a Lebanese decision to limit the check trade

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Although the deputies did not reach, due to their differences, the adoption of a law "Capital Control" Who puts controls on capital, the banks Lebanon This policy applies and is imposed on those who have deposit No more than 50 thousand US dollars, from which he withdraws only about 170 US dollars every month, which prevents him from disposing of his necessary needs, especially if he needs money, and he has no income other than withdrawing from his deposit.

Depositors resorted to withdrawing their deposits through bank checks or ordinary checks and selling them to people in return for receiving only 30 and 15 percent of their value due to their need for liquidity, while the company stressed banks Its restrictions are on checks, and bills are now required to justify receiving the check.

And the last of these restrictions was issued by the Association Lebanon banks Through Circular No. 140/2022, in which it recommended the acceptance of checks whose value does not exceed $15,000, which are deposited by the beneficiaries in their accounts, provided that they are not requested to be cashed or transferred after collection, outside Lebanon, and according to the nature of the account’s activity.

According to the statistics of the Association of Banks in Lebanon, the number of checks circulating in the country decreased to about 732,000 checks, worth nearly 17 billion Lebanese pounds during the first four months of 2022, compared to 1,256 thousand checks, worth nearly 21 billion Lebanese pounds in the same period of the year. 2021.

This decline comes in trading volume checks With the market’s inclination towards monetary operations in light of the strict restrictions imposed by banks on withdrawals.

Banking consultant Bahij Al-Khatib says in an interview with the website: "Sky News Arabia"The circular apparently means that banks must accept all checks below 15,000 US dollars and not refuse to deposit them to the customer, but it actually means calling on banks to be strict by not cashing checks and paying their value to the customer, but rather obligating him to deposit them and thus the funds become book accounts that cannot be received.

Al-Khatib added that the not entirely clear circular may help reduce trade checks Popular, as citizens were buying a check for four million Lebanese pounds and depositing it for eight million pounds, calling on the Association of Banks to clarify the circular more to remove the confusion.

For his part, says economic analyst Patrick Mardini in an interview with the website "Sky News Arabia" The circular of the Association of Banks in Lebanon aims to unify the rules, and reduce the discretion of some banks that still exist. Some of them accepted the deposit of the check to the customer and cashed it later, while others refused.

Mardini clarified that if the association aims by generalization to limit the trade of checks, this will only happen through the unification of exchange rates, and this requires a monetary policy to be implemented.

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Although the deputies did not reach, due to their differences, the adoption of the “Capital Control” law, which places controls on capital, the banks Lebanon This policy applies and is imposed on those who have deposit No more than 50 thousand US dollars, from which he withdraws only about 170 US dollars every month, which prevents him from disposing of his necessary needs, especially if he needs money, and he has no income other than withdrawing from his deposit.

Depositors resorted to withdrawing their deposits through bank checks or ordinary checks and selling them to people in return for receiving only 30 and 15 percent of their value due to their need for liquidity, while the company stressed banks Its restrictions are on checks, and bills are now required to justify receiving the check.

And the last of these restrictions was issued by the Association Lebanon banks Through Circular No. 140/2022, in which it recommended the acceptance of checks whose value does not exceed $15,000, which are deposited by the beneficiaries in their accounts, provided that they are not requested to be cashed or transferred after collection, outside Lebanon, and according to the nature of the account’s activity.

According to the statistics of the Association of Banks in Lebanon, the number of checks circulating in the country decreased to about 732,000 checks, worth nearly 17 billion Lebanese pounds during the first four months of 2022, compared to 1,256 thousand checks, worth nearly 21 billion Lebanese pounds in the same period of the year. 2021.

This decline comes in trading volume checks With the market’s inclination towards monetary operations in light of the strict restrictions imposed by banks on withdrawals.

Banking consultant Bahij Al-Khatib said in an interview with “Sky News Arabia”, that the circular apparently means that banks must accept all checks below 15,000 US dollars and not refuse to deposit them to the customer, but it actually means inviting banks to be strict by not cashing the checks and paying their value to the customer. Rather, he is obligated to deposit them, and thus the funds become book accounts that cannot be received.

Al-Khatib added that the not entirely clear circular may help reduce trade checks Popular, as citizens were buying a check for four million Lebanese pounds and depositing it for eight million pounds, calling on the Association of Banks to clarify the circular more to remove the confusion.

For his part, economic analyst Patrick Mardini said in an interview with “Sky News Arabia” that the circular of the Association of Banks in Lebanon aims to unify the rules, and reduce the discretion of some banks that still exist. Some of them accepted the deposit of the check to the customer and cashed it later, while others refused.

Mardini clarified that if the association aims by generalization to limit the trade of checks, this will only happen through the unification of exchange rates, and this requires a monetary policy to be implemented.

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