Cleared Checks’ Value Fell 8.54% Y-o-Y by July 2016

The Lebanese community is in a period of deepening uncertainties, where it is witnessing lower consumption levels and investments. This was reflected by the contracting cleared checks’ activity. As such, according to the Association of Banks in Lebanon (ABL), the value of cleared checks decreased by 8.54% year-on-year (y-o-y), where the number of checks cleared by Banque du Liban reached 7.09M worth $39.04B by July 2016, compared to 7.18M checks with a value of $42.69B, in the same period of 2015. 

In details, total value of checks in foreign currencies witnessed a decline of 12.70% y-o-y by July 2016 to $27.82B, while the value of checks denominated in Lebanese Pounds rose by a yearly 3.78% to reach $11.22B. This shows growing confidence in the Lebanese currency, despite the ongoing political impasse, and was reflected by the lower dollarization rate of checks, which decreased from 74.68% by July 2015 to 71.28% this year.

As for the value of returned checks, they recorded a rise of 7.86% to reach $991M by July 2016.

For the month of July alone, the value of cleared checks decreased by 4.09% y-o-y to $5.24B. The value of checks denominated in foreign currencies (representing 64.97% of the total) went down by an annual 5.81% to $3.75B, in opposition to the value of checks in LBP which went up marginally by 0.39% y-o-y to $1.49B.

Value of Cleared Checks by July ($M)

Cleared Checks’ Value Fell 8.54% Y-o-Y by July 2016

Source: ABL

 

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