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 18,295 checks by February 2024 to 8,910 checks in February 2025. Similarly, the value of cleared checks in local currency decreased from LBP 4,706B in February 2024 to LBP 4,041B in February 2025. However, the value of cleared checks in foreign currency dropped from $127M in February 2024 to $93M in February 2025.
Moreover, the volumes of cleared checks in Lebanese Pounds and foreign currencies witnessed substantial yearly drop of 50.28% and 78.32% respectively to settle at 17,985 and 1,160 checks, in February 2025. Accordingly, the dollarization rate of checks in terms of volume fell from 12.89% in February 2024 to 6.06% in January 2025.
Notably, the number of returned checks dropped substantially by 58.61% YOY to stand at 101 checks in February 2025. Moreover, the value of returned checks in local currency decreased by 60.13% YOY to record LBP 61B, however, the value of returned checks in foreign currency increased significantly by 215.79% YOY to record $60M in February 2025.
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 February 2025, the number of checks issued from fresh accounts reached 4,605, of which 3,467 checks were in USD currency amounting $48.05M and 1,138 checks were in LBP currency amounting LBP 2,239B.
Cleared Checks in February 2025 (in 000s)
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