Lebanon prevents green cash out and banks continue to close

Anti-government protesters shout slogans against the Lebanese government

the Association of Banks in Lebanon (ABL) announced the closure of banks on Monday, as protests continued in all Lebanese regions, which continued for 11 days.

This comes at a time when banks are worried, if they open their doors, about the huge demand for the green currency; dollar, or a large withdrawal of deposits abroad, and the deterioration of the lira exchange rate against the dollar.

Lebanon’s government bonds plunged by one cent or more, a few days after protests erupted over the country’s economic crisis.

The Public Prosecutor General of Lebanon, on Sunday, ordered the denial of green cash out at one time in the bags of money changers and merchants through Beirut International Airport and border crossings, which are carried out with a normal permit approved by the Lebanese customs. Coordination with the Lebanon’s central bank Governor Riad Salameh has been carried out so that the customs directorate will subject the transfer of funds to regulations that the Central Bank of Lebanon will determine, the National News Agency reported.

The Central Bank of Lebanon announced in a clarification on Sunday that the entities competent for shipping banknotes in foreign currencies, must be licensed, stressing the bank’s keenness to keep the currency market free and that no new statement in this regard was issued.

It’s noteworthy that for 11 consecutive days, protests have been sweeping Lebanon against a political elite accused of corruption, mismanagement of state funds, and leading the country toward an economic collapse not seen since the 1975-1990 civil war. Banks, schools and many businesses were closed throughout that period because of the events.