According to the data published by the Association of Lebanese Banks’ (ABL), the total number of cleared checks in the Lebanese financial system decreased remarkably from 353,183 checks by September 2023 to 151,419 checks by September 2024. However, the cumulative value of cleared checks in local currency increased from LBP 45,699B by September 2023 to LBP 61,976B by September 2024. This upsurge in value of Lebanese checks reflects a larger percentage of discounting Lebanese checks in the market. However, the cumulative value of cleared checks in foreign currency dropped from $ 2,848 M by September 2023 to $ 1,078M by September 2024.
Moreover, the volumes of cleared checks in Lebanese Pounds and foreign currencies witnessed substantial yearly drop of 49.07% and 83.62%% respectively to settle at 137,933 and 13,486 checks, by September 2024. Accordingly, the dollarization rate of checks in terms of volume fell from 23.31% in September 2023 to 8.91% in September 2024.
Notably, the number of returned checks dropped substantially by 71.33% YOY to stand at 836 checks in September 2024. Moreover, the value of returned checks in local & foreign currency decreased YOY respectively by 36.36% and 77.03% by September 2024 to record LBP 420B and $ 39.97M.
Banque du Liban (BDL) recently issued Circular 165, which permits depositors to make payments by check starting June 1st, 2023, as long as their accounts are in either fresh US dollars or Lebanese lira. To support this initiative, BDL has introduced a new clearing system, distinct from the one dedicated to pre-crisis deposits. This circular serves a dual purpose: it encourages customers to open new accounts in both Lebanese pounds and US dollars, while also aiming to decrease the country’s dependence on cash and stimulate economic recovery. As such, in September 2024, the cumulative number of checks issued from fresh accounts reached 21,473, of which 14,709 checks are in USD currency amounting $196.3M and 6,764 checks are in LBP currency amounting LBP 12,620B.
On a monthly basis, a total number of 3,476 fresh checks were issued in September 2024.
Cleared Checks by September 2024 (in 000s)
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