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 23,225 checks by January 2024 to 10,235 checks in January 2025. Similarly, the value of cleared checks in local currency decreased from LBP 7,154B in January 2024 to LBP 5,502B in January 2025. However, the value of cleared checks in foreign currency dropped from $ 311 M in January 2024 to $ 78M in January 2025.
Moreover, the volumes of cleared checks in Lebanese Pounds and foreign currencies witnessed substantial yearly drop of 52.07% and 78.64% respectively to settle at 9,514 and 721 checks, in January 2025. Accordingly, the dollarization rate of checks in terms of volume fell from 14.54% in January 2024 to 7.04% in January 2025.
Notably, the number of returned checks dropped substantially by 69.59% YOY to stand at 52 checks in January 2025. Moreover, the value of returned checks in local & foreign currency decreased YOY respectively by 84.67% and 75% in January 2025 to record LBP 21B and $ 4M.
Note that 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 January 2025, the number of checks issued from fresh accounts reached 4,695, of which 3,410 checks are in USD currency amounting $46.46M and 1,285 checks are in LBP currency amounting LBP 2,834B.
On a monthly basis, the total number of cleared checks (LBP & USD) in January 2025 was the highest since the introduction of the new clearing system and reached 4,695 checks.
Cleared Checks in January 2025 (in 000s)
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