Banque du Liban (BdL) issued Basic Circular 150 on April 9, 2020, about exceptional exemptions for banks from reserve requirements and from mandatory placements at BdL. Specifically, the circular exempted banks from placing mandatory reserves at BdL on transfers received from abroad or on cash deposits in Lebanese pounds and in foreign currency. It pointed out that banks can benefit from these exemptions if they meet two conditions. First, the banks must allow holders of accounts funded through foreign transfers or cash deposits to benefit from all banking services, which include the ability to transfer these funds abroad, to withdraw banknotes, and to access these funds through payment cards in Lebanon or abroad. Second, banks should implement the needed procedures, such as opening a specific account for these funds, so that banks can track the operations related to these funds. 

Further, the circular indicated that the exemptions and conditions will be valid even if holders of these accounts convert, in part or in full, the funds to any other currency. Also, it noted that, in case the client transfers these funds to another bank operating in Lebanon, the latter bank will benefit from the exemptions instead of the bank that initially had received the funds. 

In addition, the circular stipulated that the bank that does not abide by these measures will be subject to administrative penalties according to the Code of Money and Credit, and will have to place at BdL an amount equivalent to two times the funds that were exempted from the reserve requirements without benefiting from any interest on this amount. Also, the bank will have to pay a compensation equal to 15% of the fresh funds.