Lebanon Central Bank Replaces Billions in Old Currency
Routine Withdrawal Aims to Facilitate Lira Trading
The Banque du Liban has removed nearly 9.8 trillion Lebanese Lira from circulation, a move financial experts describe as standard procedure to maintain the efficiency of currency exchange.
Mass Withdrawal Detailed
Over the past year, the central bank has withdrawn approximately 9.7 billion Lebanese Pounds, valued at over 9.6 trillion Lira. This process involves removing worn-out or no-longer-circulated banknotes to inject fresher denominations into the market.
Expert Weighs In on Market Impact
Economic expert **Bilal Alama** explained to “Lebanon 24” that this action is routine for the bank. He noted that certain denominations, such as the 10,000, 5,000, 500, and 250 Lira notes, are no longer commonly used and are thus systematically removed.
“This is a routine procedure where it periodically withdraws the non-traded cash groups from the market and pumps other groups in their place to facilitate the trading process in the Lebanese pounds.”
—Bilal Alama, Economic Expert
Alama reassured the public that this withdrawal poses no threat to the liquidity of the Lebanese Pound. He highlighted that the total cash liquidity in the national currency currently stands at 79 trillion Lira.
Currency Circulation in Context
The Banque du Liban’s proactive management of currency ensures that the Lira remains a functional medium of exchange. This periodic replacement is vital for the smooth operation of daily transactions within the country.
Globally, central banks often manage currency stocks to prevent counterfeiting and ensure the integrity of their national tender. For instance, the U.S. Federal Reserve regularly destroys damaged or outdated Federal Reserve notes.
The financial sector continues to monitor the stability of the Lebanese Pound amid ongoing economic challenges. The central bank’s role in managing physical currency is a key component of this stability.
