According to ABL statistics, the value of LBP-denominated cleared checks soared by 74.01% y-o-y to LBP 9,240 billion (distributed over 66,072 checks) in the first two-months of 2023, in comparison with LBP 5,310 billion (allocated over 177,309 checks) during the same period last year. Conversely, the value of USD-denominated cleared checks contracted by 46.10% y-o-y YTD February 2023 to $1,071 million (distributed over 27,048 checks), down from $1,987 million (allocated over 179,468 checks) in the first two months of 2022. Of the total number of cleared checks, 29.05% was denominated in foreign currency, versus 50.30% a year before. On the other hand, the value of LBP-denominated returned checks rose by LBP 167 billion (575.86%) y-o-y to LBP 196 billion in the first two months of 2023, with the number of LBP-denominated returned checks plunging by 62.06% to 384. In parallel, the value of USD-denominated returned checks dropped by $11 million on a yearly basis (34.38%) during the first two months of the current year, with the number of the said checks concurrently decreasing by 83.05% to 299. 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 total number of returned checks expressed as a percentage of the total number of cleared checks dropped to 0.73% YTD February 2023, down from 0.78% in the same period of the previous year. The value of LBP-denominated returned checks calculated, as a percentage of LBP-denominated cleared checks value rose to 2.12% in the first two-months of the current year, up from 0.55% in the same period in 2022. Similarly, the value of USD-denominated returned checks calculated, as a percentage of the USD-denominated cleared checks value increased to 1.96% in the first two months of 2023, up from 1.61% in the first two-months of 2022.