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
30
o
Bekaa
31
o
Keserwan
31
o
Metn
31
o
Mount Lebanon
28
o
North
31
o
South
29
o
Live
Video
Audio
Schedule
shows
العربية
watching now
Live at 3
SUBSCRIBE
Home
Notification
Live
Video
Audio
shows
Beirut
30
o
Bekaa
31
o
Keserwan
31
o
Metn
31
o
Mount Lebanon
28
o
North
31
o
South
29
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
Details emerge: Israel strikes building in Beirut's southern suburbs, marking second attack in days
Recommended For You
d-none hideMe
0
News Bulletin Reports
13:10
Tense session: Lebanese Parliament passes key loan agreements and military grants
News Bulletin Reports
13:10
Tense session: Lebanese Parliament passes key loan agreements and military grants
0
News Bulletin Reports
13:00
Drug shipment: Lebanon foils smuggling of five million Captagon pills bound for Saudi Arabia via Syria
News Bulletin Reports
13:00
Drug shipment: Lebanon foils smuggling of five million Captagon pills bound for Saudi Arabia via Syria
0
News Bulletin Reports
12:58
Border situation: Rumors of foreign militants on Lebanon's border dismissed
News Bulletin Reports
12:58
Border situation: Rumors of foreign militants on Lebanon's border dismissed
0
News Bulletin Reports
12:48
Inside Israeli-Syrian normalization talks: What does a peace agreement offer both sides?
News Bulletin Reports
12:48
Inside Israeli-Syrian normalization talks: What does a peace agreement offer both sides?
Subscribe to our VOD
SUBSCRIBE
Our visitors readings
d-none hideMe
0
Lebanon News
05:07
PM Salam outlines reform and recovery vision: Border security, IMF deal, and $250M reconstruction loan
Lebanon News
05:07
PM Salam outlines reform and recovery vision: Border security, IMF deal, and $250M reconstruction loan
0
News Bulletin Reports
12:58
Border situation: Rumors of foreign militants on Lebanon's border dismissed
News Bulletin Reports
12:58
Border situation: Rumors of foreign militants on Lebanon's border dismissed
0
Lebanon News
2025-07-01
MEA adjusts flight schedule for July 2, 3, and 4 due to operational reasons
Lebanon News
2025-07-01
MEA adjusts flight schedule for July 2, 3, and 4 due to operational reasons
0
Lebanon News
06:30
Finance Minister Jaber says reviving banking sector and ensuring fairness for depositors a top priority
Lebanon News
06:30
Finance Minister Jaber says reviving banking sector and ensuring fairness for depositors a top priority
Videos
d-none hideMe
0
Lebanon News
13:39
Massive fire erupts at unregulated dumpsite in Bchannine, Zgharta district
Lebanon News
13:39
Massive fire erupts at unregulated dumpsite in Bchannine, Zgharta district
0
Lebanon News
2025-06-10
Clash between Lebanese Army and residents of Deir Qanoun Al Nahr results in injuries (Video)
Lebanon News
2025-06-10
Clash between Lebanese Army and residents of Deir Qanoun Al Nahr results in injuries (Video)
0
Lebanon News
2025-06-04
Mexico dedicates garden around Lebanese Emigrant Statue in Beirut to mark 80 years of diplomatic ties
Lebanon News
2025-06-04
Mexico dedicates garden around Lebanese Emigrant Statue in Beirut to mark 80 years of diplomatic ties
0
Lebanon News
2025-05-19
President Aoun to seek Egyptian support for Lebanese Army in detecting explosives and tunnels
Lebanon News
2025-05-19
President Aoun to seek Egyptian support for Lebanese Army in detecting explosives and tunnels
0
Lebanon News
2025-05-15
LBCI Exclusive: US steps up pressure on Hezbollah, Morgan Ortagus details sanctions and vision for Lebanon's future
Lebanon News
2025-05-15
LBCI Exclusive: US steps up pressure on Hezbollah, Morgan Ortagus details sanctions and vision for Lebanon's future
0
Lebanon News
2025-05-11
Kuwait rolls out official welcome for Lebanon's President Aoun – video
Lebanon News
2025-05-11
Kuwait rolls out official welcome for Lebanon's President Aoun – video
0
Lebanon News
2025-05-11
Security incidents temporarily disrupt voting in several Akkar and Minieh-Danniyeh centers
Lebanon News
2025-05-11
Security incidents temporarily disrupt voting in several Akkar and Minieh-Danniyeh centers
0
News Bulletin Reports
2025-05-09
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
News Bulletin Reports
2025-05-09
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
Most read
d-none hideMe
24 hours
7 days
Month
1
Lebanon News
10:24
Lebanon drafts reply to US demand for Hezbollah to disarm: Sources tell Reuters
Lebanon News
10:24
Lebanon drafts reply to US demand for Hezbollah to disarm: Sources tell Reuters
2
Lebanon News
02:37
Casino du Liban director Roland Khoury detained in BetArabia investigation: Sources to LBCI
Lebanon News
02:37
Casino du Liban director Roland Khoury detained in BetArabia investigation: Sources to LBCI
3
News Bulletin Reports
13:10
Tense session: Lebanese Parliament passes key loan agreements and military grants
News Bulletin Reports
13:10
Tense session: Lebanese Parliament passes key loan agreements and military grants
4
News Bulletin Reports
12:58
Border situation: Rumors of foreign militants on Lebanon's border dismissed
News Bulletin Reports
12:58
Border situation: Rumors of foreign militants on Lebanon's border dismissed
5
Lebanon News
13:39
Massive fire erupts at unregulated dumpsite in Bchannine, Zgharta district
Lebanon News
13:39
Massive fire erupts at unregulated dumpsite in Bchannine, Zgharta district
6
News Bulletin Reports
13:00
Drug shipment: Lebanon foils smuggling of five million Captagon pills bound for Saudi Arabia via Syria
News Bulletin Reports
13:00
Drug shipment: Lebanon foils smuggling of five million Captagon pills bound for Saudi Arabia via Syria
7
Middle East News
04:18
Avichay Adraee: Special operation in southern Syria targets Iran-linked cell, weapons seized
Middle East News
04:18
Avichay Adraee: Special operation in southern Syria targets Iran-linked cell, weapons seized
8
News Bulletin Reports
12:48
Inside Israeli-Syrian normalization talks: What does a peace agreement offer both sides?
News Bulletin Reports
12:48
Inside Israeli-Syrian normalization talks: What does a peace agreement offer both sides?
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