A man holding 100-dollar bills. (Credit: AFP archives)
In Lebanon, dollars circulate, finance purchases and pay salaries, but very few make their way back into the banks. When the crisis erupted in 2019, billions of dollars were withdrawn from banks or kept outside the banking system, as frozen deposits and withdrawal restrictions shattered confidence in banks and encouraged people to keep cash in private safes. More from Mounir Real estate, stocks, eurobonds: Lebanese banks multiply offers to settle deposits Since then, depositors have had little reason to put their money back in the banks when they still cannot be sure they will be able to withdraw it.As a result, in an economy where dollarization was estimated at around 85% in 2024–2025, a large share of these greenbacks remains outside the banking system, just as Lebanon seeks to demonstrate its commitment to financial transparency....
In Lebanon, dollars circulate, finance purchases and pay salaries, but very few make their way back into the banks. When the crisis erupted in 2019, billions of dollars were withdrawn from banks or kept outside the banking system, as frozen deposits and withdrawal restrictions shattered confidence in banks and encouraged people to keep cash in private safes. More from Mounir Real estate, stocks, eurobonds: Lebanese banks multiply offers to settle deposits Since then, depositors have had little reason to put their money back in the banks when they still cannot be sure they will be able to withdraw it.As a result, in an economy where dollarization was estimated at around 85% in 2024–2025, a large share of these greenbacks remains outside the banking system, just as Lebanon seeks to demonstrate its commitment to financial...
