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#76 April 4 2020

Xsever
Member

Re: Lebanese Banks Capital Control

And just to put more context to all this, please note that the total value of all these accounts covered by the BDL circular is between 800 million and one billion USD. That's it. Yes the lowest 60% own nothing more than 1 billion.

Wealth inequality clear and simple.

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#77 April 4 2020

wollyka
Member

Re: Lebanese Banks Capital Control

Like you said, It is 60% of the accounts not depositors. Big difference since many depositors have multiple accounts and usually one of them is just for small amounts.
But still, there IS wealth inequality in Lebanon for sure

Last edited by wollyka (April 4 2020)

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#78 April 6 2020

xazbrat
Member

Re: Lebanese Banks Capital Control

Saw something today that banks were going to use a 2600 rate.  Trying to get more details though.

Edit:  source

Last edited by xazbrat (April 6 2020)

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#79 April 6 2020

Tech Guru
Member

Re: Lebanese Banks Capital Control

Basically Their will be four exchange markets

The Official One at 1515 - Things imported with BDL coverage like gasoline ,  medicines , wheat will follow

The Circulation of 5,000,000 LBP or 3000 USD Account @ 2600 LL to withdraw all their accounts and close it  ,  the 2600 Rate is Exclusive for these depositors only. Those depositors constitute more than 50% of total depositors.

Daily Rate ( Now Weekly to finalize the universal forigen currencies ( including USD) rates hub - between BDL ,Banks and licensed exchangers- Now Set at 2830 LBP

Black Market Rate which is currently @ 2900 LBP


Making step 2 for larger accounts in gradual bases will release some pressure on depositors in the current economic spiral. This is the next step being circulated in closed meetings  ,  of 10 million LBP or ~ 6500 USD.

Last edited by Tech Guru (April 7 2020)

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#80 April 6 2020

Xsever
Member

Re: Lebanese Banks Capital Control

Tech Guru wrote:

The Circulation of 5,000,000 LBP or 3000 USD Account @ 2600 LL to withdraw all their accounts and close it  ,  the 2600 Rate is Exclusive for these depositors only. Those depositors constitute more than 50% of total depositors.


Making step 2 for larger accounts in gradual bases will release some pressure on depositors in the current economic spiral. This is the next step being circulated in closed meeting   ,  of 10 million LBP or ~ 6500 USD.

Good for the depositors, but for BDL/Banks to cover all this USD with the 2600 equivalent in LBP, they will need to print a lot more of LBP which will further devalue the currency. No?

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#81 April 6 2020

TheIlluminative
Member

Re: Lebanese Banks Capital Control

Xsever wrote:
Tech Guru wrote:

The Circulation of 5,000,000 LBP or 3000 USD Account @ 2600 LL to withdraw all their accounts and close it  ,  the 2600 Rate is Exclusive for these depositors only. Those depositors constitute more than 50% of total depositors.


Making step 2 for larger accounts in gradual bases will release some pressure on depositors in the current economic spiral. This is the next step being circulated in closed meeting   ,  of 10 million LBP or ~ 6500 USD.

Good for the depositors, but for BDL/Banks to cover all this USD with the 2600 equivalent in LBP, they will need to print a lot more of LBP which will further devalue the currency. No?

Of course. They can print as much as they want, but the real value of $$ will reach unprecedented numbers.

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#82 April 7 2020

Xsever
Member

Re: Lebanese Banks Capital Control

TheIlluminative wrote:
Xsever wrote:
Tech Guru wrote:

The Circulation of 5,000,000 LBP or 3000 USD Account @ 2600 LL to withdraw all their accounts and close it  ,  the 2600 Rate is Exclusive for these depositors only. Those depositors constitute more than 50% of total depositors.


Making step 2 for larger accounts in gradual bases will release some pressure on depositors in the current economic spiral. This is the next step being circulated in closed meeting   ,  of 10 million LBP or ~ 6500 USD.

Good for the depositors, but for BDL/Banks to cover all this USD with the 2600 equivalent in LBP, they will need to print a lot more of LBP which will further devalue the currency. No?

Of course. They can print as much as they want, but the real value of $$ will reach unprecedented numbers.

I think we are but I hope we are not inching closer and closer to the Venezuela model.

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#83 April 8 2020

Tech Guru
Member

Re: Lebanese Banks Capital Control

Basically there is an indirect haircut (" theft") from small depositors of USD 3000 or less. Not taking USD rather LBP @ 2600 has now a USD equivelance on the market of 2750 USD.

3000 × 2600 =  7,800,000 LBP
7,800,000 / 2830 ~ 2750 USD
Loss of: 3000 - 2750 = 250 USD

More if being circulated and applied on higer accounts

Last edited by Tech Guru (April 8 2020)

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#84 April 8 2020

nefe_lpmk
Member

Re: Lebanese Banks Capital Control

They will never give the actual market rate (~2900) not to encourage people to withdraw and directly go exchange to USD.

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#85 April 8 2020

Tech Guru
Member

Re: Lebanese Banks Capital Control

Pointhere these accounts will be closed. Aall accounts will be withdrawn to close small depositors account. Giving them a 2900 or 3000 rate doesnot matter in this circulation , it matters to the BDL & Banks. Keeping the USDs & giving a less actual value for USD holders.

Last edited by Tech Guru (April 8 2020)

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#86 April 8 2020

kareem_nasser
Member

Re: Lebanese Banks Capital Control

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#87 April 15 2020

Tech Guru
Member

Re: Lebanese Banks Capital Control

"Out of Goverance" was is and will be .. being protected by warlords  that have  been in authority since 30 years , doing monetary engineering to protect their interests. Nothing will "actually change & technically change " only manoeuvres and " purchasing fish in water".

PM Diab is trying to " do something" but at the end he will never go against the flow. The flow of corrupted authority that named him to be a PM with masked ministers " Independent on the surface" but deep related to the same authority & political parties.

Indirect haircut lunched:

The rate now is 2,600 (Banks are adopting a weekly rate instead of a monthly rate as stated in circular 148).

So for every 100$ you have in the bank, you make a gain of 109,250 LBP (difference between 2,600 and 1,507. 5). Total balance on hand will be 260,000 LBP.

If you want to purchase dollars, todays price is around 3,000 for the dollar. So you 260,000 LBP on hand will amount to 86.67$.

You loose 13.33$, or 13.33% of your original 100$.

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#88 April 15 2020

Johnaudi
Member

Re: Lebanese Banks Capital Control

Tech Guru wrote:

"Out of Goverance" was is and will be .. being protected by warlords  that have  been in authority since 30 years , doing monetary engineering to protect their interests. Nothing will "actually change & technically change " only manoeuvres and " purchasing fish in water".

PM Diab is trying to " do something" but at the end he will never go against the flow. The flow of corrupted authority that named him to be a PM with masked ministers " Independent on the surface" but deep related to the same authority & political parties.

Indirect haircut lunched:

The rate now is 2,600 (Banks are adopting a weekly rate instead of a monthly rate as stated in circular 148).

So for every 100$ you have in the bank, you make a gain of 109,250 LBP (difference between 2,600 and 1,507. 5). Total balance on hand will be 260,000 LBP.

If you want to purchase dollars, todays price is around 3,000 for the dollar. So you 260,000 LBP on hand will amount to 86.67$.

You loose 13.33$, or 13.33% of your original 100$.

This statement is only accurate for small depositors that are able to withdraw their money. You still have the larger cut to be deducted as well as the fact that your money is frozen until further inflation occurs.

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#89 April 15 2020

Tech Guru
Member

Re: Lebanese Banks Capital Control

Johnaudi wrote:
Tech Guru wrote:

"Out of Goverance" was is and will be .. being protected by warlords  that have  been in authority since 30 years , doing monetary engineering to protect their interests. Nothing will "actually change & technically change " only manoeuvres and " purchasing fish in water".

PM Diab is trying to " do something" but at the end he will never go against the flow. The flow of corrupted authority that named him to be a PM with masked ministers " Independent on the surface" but deep related to the same authority & political parties.

Indirect haircut lunched:

The rate now is 2,600 (Banks are adopting a weekly rate instead of a monthly rate as stated in circular 148).

So for every 100$ you have in the bank, you make a gain of 109,250 LBP (difference between 2,600 and 1,507. 5). Total balance on hand will be 260,000 LBP.

If you want to purchase dollars, todays price is around 3,000 for the dollar. So you 260,000 LBP on hand will amount to 86.67$.

You loose 13.33$, or 13.33% of your original 100$.

This statement is only accurate for small depositors that are able to withdraw their money. You still have the larger cut to be deducted as well as the fact that your money is frozen until further inflation occurs.


Yep ,I stated it just lunched since I have mentioned the BDL circulations above. - Added: For Depositors that have 3000 USD in saving or less.

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#90 April 17 2020

Tech Guru
Member

Re: Lebanese Banks Capital Control

BDL has issued a new circular # 551 - concerning  Electronic Banking and Financial Transactions , such as WU Money Gram .... All Transfer in foreign currencies ( Including USD) will be paid on LBP from now on according to market rate.

Another move to dry USD and diminish its supply in the market .. An added factor to speed up the devaluation of the LBP currency against USD.

A total takeover for the black market exhange rate to steadily increase , tipping 4000 rate soon.


https://www.bdl.gov.lb/laws-and-circulars.html

Last edited by Tech Guru (April 17 2020)

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#91 April 17 2020

Toufic
Member

Re: Lebanese Banks Capital Control

Anyone knows someone or has experienced themselves due dates on interest when it comes to frozen accounts in banks ?
My brother's due date / "2essteh2a2" is next week but he has no idea if the banks will even pay him 1000LL (and his savings were in USD)

Have they reduced the interest? cancelled it all together?

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#92 April 21 2020

kareem_nasser
Member

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#93 April 22 2020

Tech Guru
Member

Re: Lebanese Banks Capital Control

After Circular #549 for 3000 USD or less depositors & Circular #551 of receiving money transfers in foreign currencies , through WU or other financial institutions , in LBP @ parallel market rate  ; Here comes this new circular for more than 3000 USD depositors to withdraw their money @ LBP adjusted to a parallel market rate set by the banks #not by BDL. It is currently @ 2600 LBP and will always be less then the real black market rate ( @ 3100 LBP now).

Therefore ,from this circular and on , people will not have USD from any source. Best case scenario will be cheques trades only. As such BDL with the private banks hold depositors USD and created an indirect haircut too from the differentiation of the black market rate vs set parallel market rate which is always less. Depositors will lose their value of their USD &  will not have them anymore from now on.

Printing LBP in large volumes & inject to the market , will devaluate the currency more & more. USD shortage will increase more & more , demand on USD will increase in parallel. End result USD to LBP will steadily & exponentially increase to unprecedented rates , easily crossing the 4000 rate.

No foreign debt help in USD or Foreign currencies will diminish any niche to increase the supply of USD in the market to lower the rate.


IMG-20200421-WA0047.jpg

Last edited by Tech Guru (April 22 2020)

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#94 April 22 2020

gamingindex
Member

Re: Lebanese Banks Capital Control

Tech Guru wrote:

After Circular #549 for 3000 USD or less depositors & Circular #551 of receiving money transfers in foreign currencies , through WU or other financial institutions , in LBP @ parallel market rate  ; Here comes this new circular for more than 3000 USD depositors to withdraw their money @ LBP adjusted to a parallel market rate set by the banks #not by BDL. It is currently @ 2600 LBP and will always be less then the real black market rate ( @ 3100 LBP now).

Therefore ,from this circular and on , people will not have USD from any source. Best case scenario will be cheques trades only. As such BDL with the private banks hold depositors USD and created an indirect haircut too from the differentiation of the black market rate vs set parallel market rate which is always less. Depositors will lose their value of their USD &  will not have them anymore from now on.

Printing LBP in large volumes & inject to the market , will devaluate the currency more & more. USD shortage will increase more & more , demand on USD will increase in parallel. End result USD to LBP will steadily & exponentially increase to unprecedented rates , easily crossing the 4000 rate.

No foreign debt help in USD or Foreign currencies will diminish any niche to increase the supply of USD in the market to lower the rate.


https://i.ibb.co/p2vv3vQ/IMG-20200421-WA0047.jpg

in other workd, we are f*cked.

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#95 April 22 2020

Kareem
Member

Re: Lebanese Banks Capital Control

But the question is, assuming I am receiving international bank transfers a.k.a fresh money, can I transfer this amount outside Lebanon ?

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#96 April 22 2020

m0ei
Member

Re: Lebanese Banks Capital Control

You can. You can either cash them out in USD or transfer them abroad.

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#97 April 22 2020

Kareem
Member

Re: Lebanese Banks Capital Control

m0ei wrote:

You can. You can either cash them out in USD or transfer them abroad.


Well bank of beirut is refusing to do so. They said they don't have fresh money accounts. Go figure....

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#98 April 22 2020

Tech Guru
Member

Re: Lebanese Banks Capital Control

m0ei wrote:

You can. You can either cash them out in USD or transfer them abroad.


With yesterday circular ,  sadly no. They will simply say "  we do not have cash in USD" , take them @ 2600 LBP. Blom said to one of my friends today , he received a USD transfer from Doha yesterday. Frankly I do not know if other banks will obide with this "theft haircut"  way , it seems like that.

Last edited by Tech Guru (April 22 2020)

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#99 April 22 2020

m0ei
Member

Re: Lebanese Banks Capital Control

I'm receiving a transfer soon from abroad, I'll let you know. As far as I'm aware, fresh money are exempt from the latest circular.

If they give me LBP instead.... a massacre will happen.

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#100 April 22 2020

Kareem
Member

Re: Lebanese Banks Capital Control

m0ei wrote:

I'm receiving a transfer soon from abroad, I'll let you know. As far as I'm aware, fresh money are exempt from the latest circular.

If they give me LBP instead.... a massacre will happen.


Which bank? I have a Blom bank account and withdrawal is only possible from ATM. No more counter withdraw. On the other hand, BoB simply won't acknowledge fresh money.

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