According to ABL statistics, the value of LBP-denominated cleared checks soared by 63.88% y-o-y to LBP 17,963 billion (distributed over 139,512 checks) in the first four months of 2023, in comparison with LBP 10,961 billion (allocated over 372,150 checks) during the same period last year. Conversely, the value of USD-denominated cleared checks contracted by 58.53% y-o-y to $1,688 million YTD April 2023 (distributed over 50,906 checks), down from $4,070 million (allocated over 360,562 checks) in the first four months of 2022. Of the total number of cleared checks, 26.73% was denominated in foreign currency, versus 49.21% a year before. The value of LBP-denominated returned checks rose by LBP 302 billion (511.86%) y-o-y to LBP 361 billion in the first four months of 2023, with the number of LBP-denominated returned checks plunging by 49.70% to 1,002. In parallel, the value of USD-denominated returned checks remained almost flat $59 million on a yearly basis, with the number of said checks decreasing by 80.38% to 633. 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 0.86% YTD April 2023, up from 0.71% 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 2.01% in the first four months of the current year, up from 0.54% 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 3.44% by April 2023, up from 1.40% a year earlier.