Allegations that authorities in Lebanon have smuggled money out of the country have sparked widespread anger here when one considers that Lebanese have not been able to withdraw money from banks since Oct. 17, 2019.
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Following protests that started in 2019 because of the financial crisis, banks tightened limits on foreign currency withdrawals to $200 - $300 per week. And when the coronavirus pandemic began, cash withdrawal from those accounts were completely halted and a limit was set on local currency.
While banks, which face liquidity problems due to the crisis, kept deposits of Lebanese for nearly one-and-a-half years on grounds of preventing an outflow of capital, allegations that billions of dollars were transferred abroad by administrators caused an uproar.
Lebanese economists told Anadolu Agency that banks gave money belonging to customers to the Central Bank and in turn offered the deposits as loans to the state that is incapable of paying its debts.
Lawyer Dina Abou Zour, a founding member of the Depositors’ Union in Lebanon, said the crisis came to light with the Oct.17, 2019 mass protests.
Abou Zour said banks have faced a financial crisis due to a foreign currency shortage and thus are unable to pay deposits in dollar accounts.
She said banks are imposing restrictions on foreign currency deposit accounts to manage the situation and restrictions have been gradually expanded to include Lebanese lira accounts.
As a result of monetary policies implemented by central bank Governor Riad Salameh, people are currently unable to withdraw money even from local currency accounts, she added.
Noting that there is no legal basis for people to not have access to their deposits in foreign currency and local currency accounts, she said: “There are currently different exchange rates in the country. One of them is the official rate determined by the Central Bank as 1,500, a rate determined by the banks (3,900) and a rate traded on the black market (9,300). Therefore, even deposits withdrawn from banks are subject to serious cuts due to different exchange rates.†■