The Association of Banks in Lebanon announced that "in December 2023, the value of checks cleared in Lebanese pounds rose to 6060 billion Lebanese pounds, compared to 5381 billion pounds in the previous month and 5556 billion pounds in December 2022. The value of checks cleared in foreign currencies was 183 million dollars, compared to 106 million dollars and 577 million dollars in the previous three months, a decrease of 68.0% in 2023 compared to the previous year."
The report further noted that "in July 2023 (the latest available data), the trade balance deficit reached 1217 million dollars, compared to a deficit of 1142 million dollars in the previous month, and a deficit of 1573 million dollars in July 2022. The trade balance deficit declined to 8184 million dollars in the first seven months of 2023, compared to a deficit of 8680 million dollars during the same period last year."
The association indicated that "in December 2023, net foreign assets in the banking sector and financial institutions increased by approximately 591 million dollars, resulting from an increase in net foreign assets at Banque du Liban by 132 million dollars and net foreign assets at banks and financial institutions by 460 million dollars. Net foreign assets had increased by 186 million dollars in November 2023."
It stated that "private sector deposits in Lebanese pounds with banks decreased to 52050 billion pounds by the end of December 2023, compared to 55329 billion pounds at the end of November 2023 (45374 billion pounds at the end of December 2022). This decline was influenced by the payment of various taxes, fees, and collections through banks."
The association also indicated that "lending to the private sector in Lebanese pounds by banks dropped to 11388 billion pounds by the end of December 2023, compared to 12118 billion pounds at the end of November 2023, and 14906 billion pounds at the end of December 2022, continuing the trend observed since the onset of the crisis."
It reported that "the value of currency in circulation in Lebanese pounds, one of the main components of the monetary aggregate M2, increased to 50600 billion pounds by the end of December 2023, compared to 47460 billion pounds at the end of November 2023, marking the first increase since July 2023; it was 73514 billion pounds at the end of December 2022."
The association highlighted that "the assets of Banque du Liban in foreign currencies reached 14551 million dollars by the end of December 2023, compared to 14302 million dollars at the end of the previous month, and 15194 million dollars at the end of December 2022." It noted that "thus, these assets decreased by 643 million dollars in 2023, compared to a decrease of 2644 million dollars in 2022. At the end of 2023, these assets included liquid foreign assets amounting to 9321 million dollars."
