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Issuing higher-denomination banknotes for the Lebanese pound is simply common sense, given that the largest note currently in circulation is LBP 100,000—worth about USD 1. The others are worth even less: LBP 50,000 (roughly USD 0.50), LBP 20,000, LBP 10,000, and LBP 5,000. Lebanon has been in the grip of a currency collapse for six years, with the pound losing nearly 60 times its value and now trading at around LBP 90,000 to the dollar.
Last week, the Parliament’s Finance and Budget Committee amended the law allowing the Banque du Liban (BDL) to issue new banknotes, including denominations of LBP 500,000, LBP 1,000,000, and LBP 5,000,000. The amendment is expected to be approved by Parliament soon.
A New Monetary Context
Lebanon is now moving into a new phase for its paper currency, with banknotes expected to reflect the needs of a market that has been operating for the past two and a half years at an official exchange rate of LBP 89,500 to the dollar and at around LBP 90,500 in day-to-day commercial transactions.
The new monetary context calls for Lebanese pound banknotes with denominations higher than those currently in circulation, whether LBP 500,000, LBP 1,000,000, or LBP 5,000,000. In the coming months, an LBP 5,000,000 note will be worth roughly USD 55, compared with an LBP 100,000 note, which was worth nearly USD 66 at the pre-crisis rate of 1,507.5 pounds to the dollar.
No New Currency Issued
“Introducing these new banknotes could restore the pound’s role in payments and commercial transactions,” says an economist interviewed by This is Beirut, speaking on condition of anonymity. Practically, the Lebanese will be able to make payments more easily with fewer notes, speeding up transactions and making them more convenient, while also encouraging the use of the local currency.
The economist emphasizes, “Printing these notes is unrelated to the exchange rate or the Finance Ministry’s monetary policy and has no connection to the BDL’s control of the money supply. In other words, this is not money creation but simply the introduction of higher-denomination banknotes.”
BDL’s Circular: Preliminary Measures
When asked, the source said that Intermediate Circular No. 743, issued by the BDL on September 10, 2025, is meant to promote financial inclusion and encourage greater use of the Lebanese pound in commercial transactions.
Intermediate Circular No. 743 bans any fees or restrictions on transactions made with Lebanese pound payment cards. These locally issued cards, used by individuals at point-of-sale terminals, can now also be used to withdraw cash.
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