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 by 51.88% year over year (YoY) to 28,440 checks by March 2025. Similarly, the cumulative value of cleared checks in local currency decreased by 14.27%bYoY to LBP 15,364B by March 2025. Likewise, the cumulative value of cleared checks in foreign currency dropped by 50.58% YoY to reach $255M by March 2025.
Moreover, the volumes of cleared checks in Lebanese Pounds and foreign currencies witnessed substantial yearly drop of 48.29% and 77.53% respectively to settle at 26,810 and 1,630 checks, in March 2025. Accordingly, the dollarization rate of checks in terms of volume fell from 12.27% in March 2024 to 5.73% in March 2025.
Notably, the number of returned checks dropped substantially by 42.55% YOY to stand at 189 checks in March 2025. Moreover, the value of returned checks in local currency decreased by 46.30% YOY to record LBP 87B, however, the value of returned checks in foreign currency increased significantly by 233.86% YOY to record $65M in March 2025.
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 March 2025, the cumulative number of checks issued from fresh accounts reached 14,750, of which 11,073 checks are in USD currency amounting $152.82M and 3,677 checks are in LBP currency amounting LBP 7,377B. On a monthly basis, the number of cleared checks in March 2025 was 5,450 checks.
Cleared Checks in March 2025 (in 000s)
Disclaimer:
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.