In a series of capital control measures put in place to try to ease the effects of the financial crisis that has gripped Lebanon since October 2019, the Central Bank (BDL) instructed the banks on February 13th to lower the interest rates for customer’s deposits for both dollars and Lebanese pounds.
The interest rate was capped at 4 percent for dollar deposits and 7.5 percent for Lebanese pound deposits, according to a circular seen by AFP. This is the second time in two months that the BDL has taken such measures.
In December 2019, they had capped the interest at 5 percent for dollar deposits and 8.5 percent for Lebanese pound deposits.
As the currency keeps losing value and the crisis keeps getting worse, the Central Bank has resorted to desperate measures to limit the effects of the dollar shortage.