According to ABL statistics, the value of cleared checks fell by 22.12% on an annual basis to reach LBP 31,067 billion (distributed over 1,881,673 checks) in the first half of 2021, in comparison with LBP 39,890 billion (allocated over 3,041,067 checks) during that same period last year. Of the total value of cleared checks, 55.24% was denominated in foreign currency, versus 64.05% a year before. Concurrently, the value of returned checks fell by LBP 441 billion (51.52%) y-o-y to LBP 415 billion YTD June 2021, with the number of returned checks plunging by 80.72% to 15,361. Said anemic check clearing figures come in the light of the crippled economic activity and market’s preference for cash transactions amid the strict restrictions imposed by banks on cash withdrawals.

As a result, the number of returned checks expressed as a percentage of the total number of cleared checks dropped to 0.82% in the first half of 2021, down from 2.62% a year earlier. Concurrently, the value of returned checks calculated, as a percentage of the total cleared checks value fell to 1.34% by June this year, down from 2.15% during the first six months of 2020.