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 48.62% year over year (YoY) to 47,624 checks by May 2025. Similarly, the cumulative value of cleared checks in local currency decreased by 25.03% YoY to LBP 24.05B by May 2025. Likewise, the cumulative value of cleared checks in foreign currency dropped by 48.31% year-over-year (YoY) to reach $352M by May 2025.
Moreover, the volumes of cleared checks in Lebanese Pounds and foreign currencies witnessed substantial yearly drop of 45.67% and 74.66% respectively to settle at 45,239 and 2,385 checks, in May 2025. Accordingly, the dollarization rate of checks in terms of volume fell from 10.16% in May 2024 to 5.01% in May 2025.
Notably, the number of returned checks was dropped substantially by 47.34% YoY to stand at 267 checks in May 2025. Moreover, the value of returned checks in local currency decreased by 31.32% YOY to record LBP 125B, however, the value of returned checks in foreign currency increased significantly by 221.39% YOY to record $69M in May 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 May 2025, the cumulative number of checks issued from fresh accounts reached 27,487, of which 20,801 checks are in USD currency amounting $283.71M and 6,686 checks are in LBP currency amounting LBP 12,441B. On a monthly basis, the number of cleared checks in May 2025 was 7,089 checks.
Cleared Checks in May 2025 (in 000s)
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