According to ABL statistics, the value of cleared checks contracted by 16.92% on an annual basis to LBP 21,218 billion (distributed over 878,074 checks) in the first five months of 2022, in comparison with LBP 25,539 billion (allocated over 1,550,236 checks) during that same period last year. Of the total value of cleared checks, 35.13% was denominated in foreign currency, versus 55.84% a year before. On the other hand, the value of returned checks fell by LBP 155 billion (52.84%) y-o-y to LBP 189 billion YTD May 2022, with the number of returned checks plunging by 45.06% to 6,179. 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 0.70% by end of May 2022, down from 0.85% a year earlier. Concurrently, the value of returned checks calculated, as a percentage of the total cleared checks value fell to 0.89%, down from 1.35% during the first five months of 2021.