Just as bread is the cornerstone of food security, deposits are the cornerstone of economic security.

There are some new factors and indicators in the deposit dilemma:

• A new era and a serious government have taken a brave political decision with a constitutional interpretation of the monopoly of arms and are working to implement it, despite the government’s difficult navigation among the traps of the corrupt political class accustomed to quota and clientelism.
• A new governor, a central council, a banking authority, a new oversight committee, and an active and experienced finance minister.
• Approval of some financial and banking reform laws and the start of work on the Financial Gap Law, which is the crux of this ongoing saga since the crisis erupted on 17/10/2019, sparking the October uprising.
• The emergence of more grievances and absurdities faced by depositors, especially in the application of circulars and their amendments, such as the continuation of the banking dollar at 15,000 LBP despite the cancellation of Circular 151 in late 2023 and despite the finance minister’s statement since taking office that the banking dollar should follow the market with a ceiling not exceeding the allowed amount in LBP to contain inflation. It seems he swallowed his early statement, as Prime Minister Mikati repeatedly did before him.

We will not return to the precedent of bank closures and black market activities carried out in coordination with Riad Salameh and a mafia political class, either complicit or empowered by the surplus force of the “Hezbollah” militia.

We will not repeat the story of Sayrafa, the deceptive support, the issue of collecting bank debts at 1,500 LBP dollar rate, and check trading, which has been discussed more than the owner said in the tavern, but we must not accept “forgive and forget”.

Circular 158 was issued in June 2021, about one year and eight months after the banks’ closure ended on 31/10/2019, using this date as a dividing line between two types of dollar deposits.

Dollar deposits formed before 31/10/2019 were subjected to conditions to “qualify” after deducting several amounts, mainly: cash amounts received in foreign currency after 31/10/2019, dollar amounts transferred abroad or locally via correspondent after this date, etc. Also, some dollar amounts were excluded, mainly those converted from LBP to dollar after this date.

Circular 158, which started with $800 (400$ cash + 400$ spent at 12,000 LBP, now 800$ cash), opened Pandora’s box, especially since during the long period between 31/10/2019 and the issuance of the circular, emergency banking operations occurred due to default, especially for those with dollar deposits from both periods. Some had to distribute their deposits or parts of them within the same bank to relatives or another bank due to the confusion caused by the default and the technical nature of some accounts.

Thus, Riad Salameh established the theory of qualified and non-qualified deposits, making himself the ruler and judge of the eligibility of LBP transfers made by depositors after 31/10/2019 and before the default announcement, knowing that these were done with the approval of the concerned bank and the central bank, whose officials apparently wanted to absorb a large cash volume in Lebanese pounds from current deposits, regardless of the dollar solvency size. Part of these deposits was gradually absorbed at maturity with a high haircut under Circular 151, after small LBP depositors were neutralized and removed from the banking sector.

In late 2023, acting governor Mansoury tried to take a middle ground by issuing Circular 166, which started at $150 and later raised to $400, and Circular 682 amending 158 to benefit from some accounts transferred from one bank to another after being returned. However, the restrictions and reductions contained in Circular 158 and the arbitrary interpretation and application of its provisions sometimes contrary to the text made the beneficiaries of amendment 682 shrink significantly.

Thus, the crumbs of Circular 158 did not affect many who had dollar deposits before 31/10/2019 and were led submissively towards the exit circular.

The continued dominance of the pharaohs of politics, economy, and finance over many deep state sectors, especially after the decision to release the “little pharaoh,” makes us cautious about what is coming regarding the financial gap issue, especially since the banking lobby is entrenched in the parliament.

Therefore, we call on civil society forces, including depositors’ associations and all those keen on justice and fairness, to be alert and to follow this essential issue in all its details, stages, and contexts so that the vulnerable groups are not easily made to pay more prices for political, financial, banking, and moral corruption.