Lebanon continues to rank among the costliest countries for receiving money transfers, with recent data highlighting the financial strain on expatriates sending money home.
In the third quarter of 2024, the average cost of transferring $500 from the United States to Lebanon rose to $31.23, representing 6.25% of the amount sent. This marks an increase from $29.03 (5.81%) in the previous quarter, positioning Lebanon as one of the most expensive destinations globally for such transactions.
Transfer costs encompass bank and money exchange commissions, as well as exchange rate margins. According to Byblos Bank’s economic report, Lebanon ranks sixth worldwide in terms of the cost of transferring $500 from the US, out of 42 countries surveyed.
Remittance costs from other countries are also notably high. For instance, sending 500 Canadian dollars from Canada to Lebanon averages 38.87 Canadian dollars (7.77%), while from Australia, it costs 30.55 Australian dollars (6.11%). Transfers from France and the UK are slightly less expensive, at 20.70 euros (5.85%) and 13.53 pounds sterling (4.51%), respectively.
These elevated costs have significant implications for Lebanese families, many of whom rely on remittances to meet daily needs. The United Nations Development Program (UNDP) reported that remittances constituted 37.8% of Lebanon’s GDP in 2022, the highest proportion in the MENA region.
To alleviate the financial burden on expatriates and enhance the well-being of Lebanese households, initiatives aimed at reducing transfer costs are essential. These include the adoption of innovative financial technologies and the promotion of competition among transfer service providers.
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