According to the data published by the Association of Lebanese Banks’ (ABL), the total number of cleared checks in the Lebanese financial system slumped from 565,271 checks by March 2022 to 159,827 checks by March 2023. Moreover, the cumulative value of cleared checks in local currency increased remarkably from LBP 8,340B by March 2022 to LBP 14,886B by March 2023. This upsurge is driven by a significant increase in value of Lebanese checks which reflects a larger percentage of discounting Lebanese checks in the market. Meanwhile, the cumulative value of cleared checks in foreign currency fell from $2,994M by March 2022 to $1,555M by March 2023.
Moreover, the volumes of cleared checks in Lebanese Pounds and foreign currencies witnessed significant yearly drops of 59.35% and 84.34% respectively to settle at 115,975 and 43,852 checks, by March 2023. Accordingly, the dollarization rate of checks in terms of volume fell from 49.52% in March 2022 to 27.44% in March 2023. Also, interesting to note that average check value in Lebanese Pounds increased from LBP 29.3 M to LBP 128.3M between March 2022 and March 2023.
Notably, the number of returned checks fell substantially by 69.2% YOY to stand at 1,280 checks. Moreover, the value of returned checks in foreign currency dropped by 34.78% by March 2023 to reach $30M, while the value of returned checks in local currency increased remarkably by 517.02% YOY to reach LBP 290B by March 2023.
Number of Checks by March 2023 (in Thousands)
Source: ABL, BLOMINVEST
This article is a research document that is owned and published by Blominvest Bank SAL.
No material from this publication may be modified, copied, reproduced, repackaged, republished, circulated, transmitted or redistributed directly or indirectly, in whole or in any part, without the prior written authorization of Blominvest Bank SAL.
The information and opinions contained in this document have been compiled from or arrived at in good faith from sources deemed reliable. Neither Blominvest Bank SAL, nor any of its subsidiaries or affiliates or parent company will make any representation or warranty to the accuracy or completeness of the information contained herein.
Neither the information nor any opinion expressed in this research article constitutes an offer or a recommendation to buy or sell any assets or securities, or to provide investment advice.
This research article is prepared for general circulation and is circulated for general information only.