Methods of Payment

For many years, the U.S. dollar and Lebanese pound were used interchangeably in Lebanon, and Lebanon did not restrict currency conversions or foreign fund transfers.  Following the 2019 economic crisis, banks imposed withdrawal restrictions on pre-October 2019 USD-denominated accounts.  Subsequently, the country’s economy has largely dollarized, and many payment methods shifted to cash. Lebanese banks are no longer confirming lines of credits for importers without a 100 percent cash collateral up front.  While cash remains the primary payment method, since 2022, “fresh dollar” credit cards linked to accounts regained their function.  As of March 2024, Lebanon had different exchange rates: the official rate of 15,000 LBP / 1 USD; the Central Bank’s “Sayrafa” of 89,500 LBP / 1 USD (which has been used, for example, to convert government salary payment from LBP to USD); and the parallel market rate of around 89,700 LBP / 1 USD.  On September 7, the Cabinet approved the implementation of a Bloomberg trading platform that aims to establish an official market rate, with the eventual goal of unifying the country’s multiple exchange rates.  LBP is currently valued at less than 2 percent of its pre-crisis pegged value.  The exchange rate bottomed out and then stabilized during mid-2023, but future volatility is possible. 

For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide. 

Banking Systems

Lebanon’s banks are insolvent, having accumulated more than $72 billion in losses. In a March 2023 statement, the IMF noted that “banks are unable to extend credit to the economy and bank deposits are mostly inaccessible to customers.”  Hence the economy has been heavily relying on cash transactions outside the banking system and on cash transfers from money transfer companies. Clients cannot transfer overseas money deposited prior to October 2019.  Lebanon has yet to adopt formal capital controls legislation via Central Bank circulars, but most economic analysts believe such a law is necessary to preserve what limited foreign currency is left in the country, provide a legal framework for banks to limit withdrawals, and provide a level playing field to all Lebanese depositors.

Lebanon’s default on its USD-denominated debt in 2020 – Lebanese banks at the time held $12.7 billion in Lebanon’s dollar bonds – further eroded Lebanese banks’ balance sheets.  Financial experts estimated that 52 percent of loans from Lebanese banks were non-performing in December 2022.  Bankers reported that correspondent banks overseas have stopped providing them with lines of credits – or only provide facilities with onerous conditions because of increasing country risk – further hampering bank efficacy in Lebanon.  Correspondent banks also place high levels of due diligence on local banks because of the incomplete implementation of anti-money laundering/countering the financing of terrorism (AML/CFT) standards.  The government’s April 2022 staff-level agreement with the IMF requires an upfront recognition of financial sector losses, which will likely entail the combination of a conversion of dollar-denominated deposits into local currency and a potential “haircut” on dollar deposits, in which wealthy account holders could lose some of their deposits to help recapitalize banks after shareholders “bail-in” (convert their deposits into bank shares) their financial institutions.  It is unclear whether the government has the political will to implement such a reform, however.  The Lebanese banking sector covers the entire country with hundreds of operating commercial and investment bank branches.  However, many branches have closed as banks are cutting costs to cope with the current crisis. 

Lebanon’s Central Bank was established in 1963 and regulates banks and financial institutions.  Foreign banks and branches need the Central Bank’s approval to establish operations in Lebanon.  Moreover, any shareholder with more than five percent of a bank’s share capital must obtain prior approval from the Central Bank to acquire additional shares in that bank and must inform the Central Bank when selling shares.  In addition, any shareholder needs to obtain prior approval from the Central Bank if s/he wants to become a board member.  The use of cryptocurrencies is not regulated in Lebanon.  The Central Bank announced that it is developing a digital currency that it plans to issue for domestic use only.

There are no legal restrictions in Lebanon on foreigners’ or non-residents’ ability to open a bank account in local or foreign currency, provided they abide by Lebanese compliance regulations.  Banks inform customers of Know-Your-Customer requirements and ask them about the purpose of opening new accounts and about the sources of funds to be deposited. Lebanese banks note they are compliant with the Foreign Account Tax Compliance Act (FATCA).  Lebanon adopted the OECD Common Reporting Standards since January 1, 2018.

Foreign Exchange Controls

Commercial banks in late 2019 introduced informal capital controls on Lebanese depositors to stem the outflow of foreign currency; these controls have persisted today, and banks have barred virtually all overseas transfers from pre-October 2019 USD accounts.  Clients with Lebanese pound (LBP)-denominated accounts can only convert their LBP to USD at licensed and unlicensed money exchangers.

The conversion of foreign currencies or precious metals is unfettered.  Lebanon’s Central Bank posts a daily local currency-exchange rate on its website: https://www.bdl.gov.lb/Lebanon is heavily dollarized and businesses commonly accept payment in U.S. dollars.

U.S. Banks and Local Correspondent Banks:

Below is a list of U.S. banks operating in Lebanon:

CITIBANK N.A.

Berytus Park, Bloc A, 3rd floor

Park Avenue, Beirut Central District

P.O. Box 11-1535

Beirut, Lebanon

Tel: 961-1-962464

Fax: 961-1-962444

BANK OF NEW YORK (LONDON)

160 Queen Victoria Street

London, EC4V 4LA

United Kingdom

Tel: +44 20 75701784

BANK OF NEW YORK (DUBAI OFFICE)

PO Box 5506723, Dubai International Financial Ctr, Level 6, Gate Precinct Bldg, 5 Gate District

Dubai City

United Arab Emirates

Tel: +971 4 4252571

STANDARD CHARTERED BANK DIFC Dubai UAE

Dubai International Financial Centre

Unit 301 , Level 3, Gate Precinct Building 1, Dubai International Financial Centre, Dubai City, 999, United Arab Emirates

+971 600 522288

JPMORGAN CHASE BANK NA (Representative Office)

Gefinor Center, Bloc B, 16th floor, Suite No.1601

Clemenceau Street,

P.O. Box 11-5133

Beirut, Lebanon

Tel: 961-1-739583

Fax: 961-1-739581

Below is a list of the largest banks (ranked by assets as of December 2020) that have correspondent U.S. banking relationships:

BANK AUDI S.A.L.

Bank Audi Plaza, Bab Idriss

P.O. Box 11-2560

Beirut, Lebanon

Tel: 961-1-994000

Fax: 961-1-990555

BLOM BANK S.A.L.

BLOM Bank Bldg.

Rashid Karameh Ave., Verdun

P.O. Box: 11-1912 Riad ElSolh,

Beirut 1107-2807, Lebanon

Tel: 961-1-738938

BYBLOS BANK S.A.L.

Byblos Bank Headquarters,

Elias Sarkis Avenue, Ashrafieh

P.O. Box: 11-5605 Riad ElSolh,

Beirut 1107-2811, Lebanon

Tel: 961-1-335200

Fax: 961-1-334554

FRANSABANK S.A.L.

Fransabank Center,

Hamra Street

P.O. Box: 11-0393 Riad ElSolh,

Beirut 1107-2803, Lebanon

Tel: 961-1-340180

Fax: 961-1-354572

SOCIETE GENERALE DE BANQUE AU LIBAN S.A.L. (SGBL)

Sehnaoui Bldg,

Riad ElSolh Street, Beirut Central District

P.O. Box: 11-2955

Beirut, Lebanon

Tel: 961-1-980783

Fax: 961-1-980785

BANKMED S.A.L.

BankMed Center

482 Clemenceau Street

P.O. Box: 11-0348 Riad ElSolh,

Beirut 1107-2030, Lebanon

Tel: 961-1-373937

Fax: 961-1-362706

BANK OF BEIRUT S.A.L.

Bank of Beirut Bldg

Foch Street, Beirut Central District,

P.O. Box: 11-7354

Beirut, Lebanon

Tel: 961-1-958000

BANQUE LIBANO-FRANCAISE S.A.L.

Beirut Liberty Plaza

Rome Street, Hamra

P.O.Box 11-0808

Beirut, Lebanon

Tel: 961-1-791332

Fax: 961-1-440183

CREDIT LIBANAIS S.A.L.

Credit Libanais Tower

Corniche El Nahr, Adlieh Roundabout

P.O.Box: 16-6729

Beirut, Lebanon

Tel: 961-1-608000

Fax: 961-1-608126

BBAC S.A.L.

BBAC Bldg., 250 Clemenceau Street

P.O.Box 11-1536 Riad ElSolh,

Beirut 1107 2080, Lebanon

Tel: 961-1-366630

Fax: 961-1-365200

IBL BANK S.A.L.

Al Ittihadiah Bldg

Charles Malek Avenue, Rmeil 

P.O.Box 11-5292 Riad ElSolh,

Beirut 1107-2190, Lebanon

Tel: 961-1-200350

Fax: 961-1-204505

LEBANON AND GULF BANK S.A.L.

Lebanon and Gulf Bank Bldg,

Allenby Street, Beirut Central District

P.O. Box 11-3600

Beirut, Lebanon

Tel: 961-1-965000

Fax: 961-1-965699

FIRST NATIONAL BANK S.A.L.

Allenby Street, Marfaa 147 Bldg,

Beirut Central District

P.O.Box 11-435 Beirut, Lebanon

Tel: 961-1-963000

Fax: 961-1-973090

CREDITBANK S.A.L.

Freeway Center,

Sin El Fil Blvd.

P.O.Box: 16-5795

Beirut, Lebanon

Tel: 961-1-501600

Fax: 961-1-485245

SARADAR BANK S.A.L.

Saradar Building,

Charles Malek Avenue, Achrafieh

P.O.Box: 16-5766

Beirut, Lebanon

Tel: 961-1-200770

For additional information, visit the Investment Climate Statements - United States Department of State.