Before the civil war, Lebanon developed as a free-market economy with minimal government regulations. Because the country had a stable and open economy and strict laws regarding secrecy in banking, Beirut became the banking and investment center of the Middle East. From 1975 to 1990, however, warfare severely dislocated most economic sectors and destroyed structures and infrastructures totaling an estimated $25 billion to $30 billion.

As the war damaged Lebanon’s economy, most of the rest of the Middle East experienced an economic boom, and businesses moved from Beirut to other Middle East economic centers. Lebanon’s economy did not collapse completely during the war, however, largely because foreign aid to competing militias fueled the wartime economy.
Since 1991 Lebanon’s economy has begun to revive. Annual inflation, about 500 percent in 1987, was manageable by the mid-1990s. Gross domestic product (GDP) totaled $15 billion in 1997, with the GDP expanding by an average of 8.3 percent annually in the period 1990-1997. Horizon 2000, a multibillion-dollar reconstruction program to rebuild Beirut’s central district, is the main focus of the government’s energies. The government hopes the redevelopment will encourage a broader national recovery. Services, trade, manufacturing, and agriculture are now leading sectors, and the booming construction sector is also significant. However, the government remains severely short of funds and has increasingly privatized public functions, including some official monopolies, such as the postal service . 

Banking: 
Banking is a major industry in Lebanon with strict banking secrecy as one of its important features. More than eighty banks operate in the country with transactions performed efficiently and at low cost

Lebanese Currency:
Movement of currency into and out of the country and all exchange transactions are completely free of any kind of control. Foreign currency can be exchanged at any bank or at one of the numerous money exchange shops.  Note that $US are accepted everywhere.
The monetary unit is the Lebanese Lira (LL) and currency is issued in LL500, LL1,000, LL5,000, and LL10,000, LL20,000, LL50,000 and LL100,000 notes. Coins are minted in LL 500, LL 250, LL 100 and LL 50 units.
(1,504 Lebanese pounds equal U.S.$1).

Credit Cards and Travelers Checks:
Visitors will find many credit cards are accepted in larger establishments. Master Card, American Express, Diners Club International and Visa International are among those in common use.  In addition, local credit cards such as Investment Credit Card, Cashless Card and Link Card are accepted. It is best not to count on cashing travelers checks since they require at least two weeks to clear.

Back