According to ABL statistics, the value of LBP-denominated cleared checks soared by 78.49% y-o-y to LBP 14,886 billion (distributed over 115,975 checks) in the first quarter of 2023, in comparison with LBP 8,340 billion (allocated over 285,326 checks) during the same period last year. Conversely, the value of USD-denominated cleared checks contracted by 48.06% y-o-y YTD March 2023 to $1,555 million (distributed over 43,852 checks), down from $2,994 million (allocated over 279,945 checks) in the first quarter of 2022. Of the total number of cleared checks, 27.44% was denominated in foreign currency, versus 49.52% a year before. On the other hand, the value of LBP-denominated returned checks rose by LBP 243 billion (517.02%) y-o-y to LBP 290 billion in the first quarter of 2023, with the number of LBP-denominated returned checks plunging by 49.46% to 789. In parallel, the value of USD-denominated returned checks dropped by $16 million on a yearly basis (34.78%) during the first quarter of the current year, with the number of the said checks concurrently decreasing by 81.08% to 491. 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 rose to 0.80% YTD March 2023, up from 0.74% in the same period of the previous year. Concurrently, the value of LBP-denominated returned checks calculated, as a percentage of LBP-denominated cleared checks value rose to 1.95% in the first three months of the current year, up from 0.56% 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 1.93% in the first quarter of 2023, up from 1.54% in the first quarter of 2022.