Lebanon’s central bank has instructed commercial banks to end the additional cash withdrawals that were exceptionally granted due to the recent conflict between Israel and Hezbollah. These withdrawals had been available to customers benefiting from the mechanisms set by Circulars No. 158 and 166.

A central bank source told L’Orient-Le Jour that the decision marks a “return to normal,” meaning that the extra withdrawals permitted since October 2024 will be brought to an end, awaiting the formation of a new government for further adjustments. 

The war-related measures were originally set to expire in February after being in effect since October. This decision ends a four-month period during which depositors were allowed to withdraw higher-than-usual amounts under Intermediate Circulars No. 717 and 718. During this time, banks allowed double the standard withdrawals in November, December, and January, while in October, the withdrawal limit was temporarily raised to the equivalent of three months’ worth.

The central bank’s foreign currency reserves declined by more than half a billion dollars between late September and mid-December. However, BlomInvest reported that by mid-December 2024, reserves had increased by 9.1% compared to the same period in 2023.

By the end of December, the central bank reported that 431,448 depositors had benefited from Circulars No. 158 and 166 since their launch, with a total of $3.24 billion withdrawn.

According to the latest figures from Byblos Bank’s weekly report, the central bank's foreign currency reserves stood at $10.34 billion as of mid-January 2025, slightly higher than the $10.13 billion recorded at the end of 2024. By mid-December, reserves had reached $10.18 billion.

Valid until June 2025 unless further extended, Circulars No. 158 and 166 were introduced by the central bank in response to Lebanon’s banking crisis, which erupted in 2019. These measures aimed to provide partial relief to depositors whose accounts have been subject to illegal withdrawal restrictions since late 2019.

Issued on June 8, 2021, Circular No. 158 has been extended three times. Under normal conditions, depositors who subscribed before June 30, 2023, were allowed to withdraw $400 per month (up to $4,800 per year, with a total cap of $50,000). Those who subscribed after that date were limited to $300 per month ($3,600 per year).

During the exceptional withdrawal period, depositors were allowed to withdraw a total of $2,800 since October—$1,200 in the first month (three times the usual limit), followed by $800 in November, December, and January.

Circular No. 166, issued on February 3, 2024, replaced Circular No. 151 and allows depositors who do not qualify for Circular No. 158 to withdraw $150 in fresh dollars per month, with a total cap of $4,350. During the exceptional period, these depositors were able to withdraw a total of $1,050 between October and December—$450 in the first month, followed by $300 in both November and December.