Lebanon's Central Bank has asked banks to provide their clients with the equivalent of two monthly withdrawals in January. This payment applies to those benefiting from the withdrawal mechanisms set forth by the Central Bank's Circulars No. 158 and 166, which aim to alleviate the financial constraints faced by depositors following Lebanon's ongoing economic crisis.

The new measure mirrors an exception first introduced in September due to the "emergency conditions facing the country." 

Circulars No. 158 and 166, which were established in response to Lebanon's financial and banking crisis, aim to partially mitigate the effects of the restrictions imposed on accounts opened and funded before the end of 2019. These circulars, which will remain in effect until June 2025, have provided some relief to depositors grappling with the freezing of accounts and withdrawal limits.

Circular No. 158, implemented on June 8, 2021, allows depositors to withdraw "fresh" dollars from foreign currency accounts opened before October 30, 2019. These accounts, now referred to as "lollars" accounts, were initially subject to restrictions. Under Circular No. 158, depositors who adhered to the circular by June 30, 2023, could withdraw up to $400 per month (up to $4,800 annually, with a total limit of $50,000). After July 1, 2023, those who opted into the mechanism were eligible for $300 per month, up to $3,600 annually.

Circular No. 166, issued on February 3, 2024, targets those depositors who do not benefit from Circular No. 158. These individuals are allowed to withdraw $150 per month from their "lollars" accounts, up to a total of $4,350. Circular No. 166 effectively replaced Circular No. 151, which had allowed small withdrawals in Lebanese pounds at a rate far below the market exchange rate.

In practical terms, beneficiaries of Circular No. 158 who adhered to the regulations before June 30, 2023, were eligible to withdraw $1,200 in October, thanks to the first exemption. They received an additional $800 in November. Those who enrolled after June 30, 2023, were entitled to withdraw $900 in October and were able to access another $600 in November. Meanwhile, those benefiting from Circular No. 166 were eligible for $450 in October and received $300 in November.