Serena al-Haddad, "Akhbar al-Yawm" agency
A New Chapter for Lebanese Currency: High-Value Notes and High Security
Hobeika to "Akhbar al-Yawm": BDL plays a pivotal role; Small denominations to remain available
In its legislative session, Parliament approved amendments to Articles 2 through 8 of the "Code of Money and Credit and the Establishment of the Central Bank(BDL)". The amendments allow BDL to issue new high-denomination banknotes (500,000 LBP and 1,000,000 LBP) while maintaining the overall money supply in the market.
Regarding the printing process and anti-counterfeiting measures, economic expert Louis Hobeika explained, via the "Akhbar al-Yawm" agency that only two or three specialized companies worldwide have the capacity and advanced technology to securely print currencies. BDL will need to engage with one of these companies, possibly the one it has historically worked with, to agree on designs and specifications before production begins.
Hobeika noted that while counterfeiting can never be fully eradicated, even major currencies like the dollar and euro are regularly forged, the difficulty lies in replicating the complex security features embedded during printing. These include design elements, specialized inks, textures, and embedded images that make duplication extremely difficult.
As for the design and size of the new bills, they will be decided jointly between BDL and the printing company. Whether the notes will feature landmarks like the Baalbek citadel or figures like Emir Fakhreddine will be determined based on how easily such designs can incorporate anti-counterfeit protections.
On the practical impact, Hobeika predicts that with the introduction of these higher denominations, the use of lower-value bills (like the 100,000 LBP) will naturally decline. For instance, paying two million lira will soon require just two or four bills instead of twenty.
Concerning the cost, printing expenses will depend on agreements between BDL and the supplier, taking into account the production quantity. Importantly, although higher denominations will be introduced, the Central Bank will withdraw smaller bills to ensure that the total money supply remains stable.
Finally, when asked whether small denominations like the 20,000 LBP could disappear, Hobeika clarified that they will remain in circulation but with more limited use. The central bank will decide whether to withdraw some of them, likely starting with the highly circulated 100,000 LBP bills.
He concluded by stressing that if the Lebanese public increasingly prefers using the local currency over the dollar, this shift would strengthen confidence in the national currency and support its stability.
Akhbar Al Yawm