News
Latest News
news bulletin
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Other News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Beirut
23
o
Bekaa
19
o
Keserwan
26
o
Metn
26
o
Mount Lebanon
24
o
North
24
o
South
23
o
Live
Video
Audio
Schedule
shows
العربية
watching now
Late Night News
SUBSCRIBE
Home
Notification
Live
Video
Audio
shows
Beirut
23
o
Bekaa
19
o
Keserwan
26
o
Metn
26
o
Mount Lebanon
24
o
North
24
o
South
23
o
News
Programs
The News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Programs
Series
Movies
Documentaries
Variety
Comedy
Talk Show
News Bulletin
Sports
Breaking News
Latest News
Highlighted News
Most Read
Videos
العربية
Watch the latest programs and the latest developments on your favorite screen
Shows
Join millions of followers
Who We Are
Contact Us
Advertise With Us
Careers
Channel frequencies
Privacy Policy
Terms and Conditions
Lebanon's cash economy: Challenges and efforts to reform
News Bulletin Reports
07-09-2023 | 11:16
High views
Share
Share
4
min
Lebanon's cash economy: Challenges and efforts to reform
When was the last time you could move around Lebanon and make purchases with just a debit card? Or seamlessly transfer funds from one bank to another or even pay with checks instead of carrying a stack of money? It has been about four years.
Before the 2019 crisis, most financial transactions in Lebanon were conducted through banks.
However, due to the loss of trust in the banking sector and the local currency, cash has taken over, leading to the dominance of the cash economy.
In numbers, according to the World Bank, the size of the dollar-based cash economy reached approximately $9.9 billion in 2022, nearly half the size of Lebanon's economy. This represents a significant increase from 14 percent of the economy in 2020 and 27 percent in 2021. This upward trend poses tremendous risks to citizens, the country, and its economy.
1. Tax evasion becomes easier: With the prevalence of the cash economy, tax evasion becomes more convenient. For example, when companies and merchants conduct transactions in cash, they can underreport their income to the government. Therefore, the state treasury loses its tax revenues. Furthermore, since cash transactions occur outside the banking sector and lack documented records, auditing becomes challenging, increasing border smuggling and customs invoice fraud.
2. Facilitating money laundering: The cash economy facilitates the laundering of corrupt funds. For instance, it is difficult to trace the source of funds for illicit activities when transactions are conducted in cash. In contrast, banks must provide transparent records of the origins of funds for every transaction, complying with international anti-money laundering laws. This issue was one of the reasons Lebanon came close to being placed on the Financial Action Task Force (FATF) gray list before being granted a one-year extension to address its shortcomings.
3. Hindering economic growth: An economy heavily reliant on cash cannot quickly recover, grow, or create job opportunities. For example, obtaining loans for expanding businesses becomes much more challenging without a functioning banking sector.
4. Loss of Central Bank control: The central banks often intervene in markets through banks to regulate interest rates and stabilize exchange rates. However, the BDL has lost much influence due to the weakened banking sector. Worse still, its attempt to control the cash economy through the Sayrafa platform resulted in market chaos, increased speculation, and favored a select few who profited from the price difference between the platform and the parallel market.
As a result, we are witnessing chaos, a lack of transparency, control, and the ability to track dollars. The international community has raised alarm bells about Lebanon's cash economy, leading to reluctance among foreign investors and financial institutions to engage with the country.
Can the state successfully combat the cash economy through laws and measures subject to international monitoring?
Lebanon News
Lebanon Economy
News Bulletin Reports
Lebanon
Cash
Economy
Challenges
Efforts
Reform
USD
LBP
Next
Israeli army plans to reinforce border with Lebanon, prepares for withdrawal from Western sector
Recommended For You
d-none hideMe
0
News Bulletin Reports
14:18
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
News Bulletin Reports
14:18
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
0
News Bulletin Reports
13:08
Path to Lebanon’s banking reform law remains slow and challenging — The details
News Bulletin Reports
13:08
Path to Lebanon’s banking reform law remains slow and challenging — The details
0
News Bulletin Reports
13:00
Trump 'blindsides' Netanyahu with Saudi nuclear green light: Is Israel losing its influence over US Mideast policy?
News Bulletin Reports
13:00
Trump 'blindsides' Netanyahu with Saudi nuclear green light: Is Israel losing its influence over US Mideast policy?
0
News Bulletin Reports
2025-05-08
Lebanon's state takes action: Illegal kiosks at Beirut Port removed after 11 years of violations
News Bulletin Reports
2025-05-08
Lebanon's state takes action: Illegal kiosks at Beirut Port removed after 11 years of violations
Subscribe to our VOD
SUBSCRIBE
Our visitors readings
d-none hideMe
0
Middle East News
2025-03-09
Iran would consider talks with US about concerns over militarization of nuclear program: UN mission
Middle East News
2025-03-09
Iran would consider talks with US about concerns over militarization of nuclear program: UN mission
0
Lebanon News
2025-04-04
LBCI sources: Judge Ali Ibrahim detains Karim Salam following complaint by MP Farid Boustani
Lebanon News
2025-04-04
LBCI sources: Judge Ali Ibrahim detains Karim Salam following complaint by MP Farid Boustani
0
Lebanon News
2025-03-24
Lebanon announces 2025 municipal election dates
Lebanon News
2025-03-24
Lebanon announces 2025 municipal election dates
0
Lebanon News
2025-05-01
Israeli strike on Meiss El Jabal kills one, injures another: Health Ministry
Lebanon News
2025-05-01
Israeli strike on Meiss El Jabal kills one, injures another: Health Ministry
Videos
d-none hideMe
0
News Bulletin Reports
14:18
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
News Bulletin Reports
14:18
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
0
Lebanon News
2025-04-23
US envoy Morgan Ortagus hails Lebanese diaspora, says country stands at a crossroads
Lebanon News
2025-04-23
US envoy Morgan Ortagus hails Lebanese diaspora, says country stands at a crossroads
0
Lebanon News
2025-04-08
Morgan Ortagus urges Lebanon to pass banking reforms to restore financial trust
Lebanon News
2025-04-08
Morgan Ortagus urges Lebanon to pass banking reforms to restore financial trust
0
Lebanon News
2025-04-06
LBCI Exclusive: US envoy Morgan Ortagus reveals US vision for Lebanon’s stability and disarmament – full interview transcript
Lebanon News
2025-04-06
LBCI Exclusive: US envoy Morgan Ortagus reveals US vision for Lebanon’s stability and disarmament – full interview transcript
0
Lebanon News
2025-03-23
LBCI's Pierre El Daher bids farewell to Hoda Chedid: You will always be our guiding light
Lebanon News
2025-03-23
LBCI's Pierre El Daher bids farewell to Hoda Chedid: You will always be our guiding light
0
Middle East News
2025-03-19
Israeli official urges international support for Lebanese government and army
Middle East News
2025-03-19
Israeli official urges international support for Lebanese government and army
0
Lebanon News
2025-02-23
Israeli aircraft fly at low altitude over Beirut during Hezbollah's former leaders funeral
Lebanon News
2025-02-23
Israeli aircraft fly at low altitude over Beirut during Hezbollah's former leaders funeral
0
Lebanon News
2025-02-23
Coffins of Sayyed Hassan Nasrallah and Hashem Safieddine enter Sports City Stadium (Video)
Lebanon News
2025-02-23
Coffins of Sayyed Hassan Nasrallah and Hashem Safieddine enter Sports City Stadium (Video)
0
Lebanon News
2025-02-23
Tens of thousands gather at Sports City Stadium for farewell to Hezbollah’s former leader Nasrallah (Video)
Lebanon News
2025-02-23
Tens of thousands gather at Sports City Stadium for farewell to Hezbollah’s former leader Nasrallah (Video)
Most read
d-none hideMe
24 hours
7 days
Month
1
Lebanon News
03:51
Israeli drone drops sound bomb on stone factory in Kfarkela — NNA
Lebanon News
03:51
Israeli drone drops sound bomb on stone factory in Kfarkela — NNA
2
Lebanon Economy
02:18
Fuel prices in Lebanon updated
Lebanon Economy
02:18
Fuel prices in Lebanon updated
3
Lebanon News
06:52
Diaspora groups push for electoral law amendment to confirm expat voting rights for all 128 parliamentary seats — press release
Lebanon News
06:52
Diaspora groups push for electoral law amendment to confirm expat voting rights for all 128 parliamentary seats — press release
4
Lebanon News
05:04
Lebanon ready for Emirati return amid tightened airport security, interior minister says
Lebanon News
05:04
Lebanon ready for Emirati return amid tightened airport security, interior minister says
5
Lebanon News
05:40
Lebanon's FM discusses southern tensions with UNIFIL chief, backs mission's mandate
Lebanon News
05:40
Lebanon's FM discusses southern tensions with UNIFIL chief, backs mission's mandate
6
News Bulletin Reports
13:00
Trump 'blindsides' Netanyahu with Saudi nuclear green light: Is Israel losing its influence over US Mideast policy?
News Bulletin Reports
13:00
Trump 'blindsides' Netanyahu with Saudi nuclear green light: Is Israel losing its influence over US Mideast policy?
7
News Bulletin Reports
14:18
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
News Bulletin Reports
14:18
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
8
World News
06:04
Pope Leo XIV says Church must illuminate 'dark nights of this world'
World News
06:04
Pope Leo XIV says Church must illuminate 'dark nights of this world'
Download now the LBCI mobile app
To see the latest news, the latest daily programs in Lebanon and the world
Google Play
App Store
We use
cookies
We use
cookies
to make
your experience on this
website better.
Accept
Learn More