Lebanese banks set 2,600 pounds to dollar rate for small accounts: central bank source

 Lebanese banks are to apply an exchange rate of 2,600 pounds per dollar for withdrawals from small accounts of up to 5 million Lebanese pounds, a central bank source said Monday, in the implementation of a new circular issued Friday.

Lebanon is still applying an official peg of 1,507.5 pounds to the dollar for bank transactions and critical imports, the governor said Friday.

But the circular issued Friday said deposits of $3,000 or less could be withdrawn in Lebanese pounds at a "market" rate, allowing small depositors to cash out despite tight banking controls. It also allowed for the paying out of deposits of 5 million Lebanese pounds or less.

A senior banking source said this rate would be fixed on a weekly basis and had this week been fixed at the 2,600 rate.