1916
Ottoman-European Monetary Administration
During the Ottoman period (until 1918), monetary activity was managed through the Imperial Ottoman Bank under European, primarily French, administration.
Timeline
1916–1926
Birth of the Monetary System
1918
Replacement by the Egyptian Pound
Allied forces led by General Allenby entered the region, beginning the replacement of the Ottoman monetary system with the Egyptian pound linked to sterling.
1919
Banque de Syrie and the Mandate
The French Mandate began and Banque de Syrie was established to manage currency issuance in areas under French influence.
1920
Birth of the Syrian Lira
The Egyptian pound was withdrawn from circulation and the Syrian lira, linked to the French franc, was created.
1924
The Lebanese-Syrian Lira
The Lebanese-Syrian lira emerged after the proclamation of Greater Lebanon, creating a unified monetary system for Lebanon and Syria managed by Banque de Syrie et du Grand-Liban.
1926
The Emerging Lebanese Republic
The Lebanese Republic was proclaimed, and Beirut began developing into an emerging financial and political center.
1948–1964
Toward Banque du Liban
1948
Separation from the Syrian Lira
The Lebanese lira was fully separated from the Syrian lira and adopted as an independent national currency.
1963
Establishment of Banque du Liban
Banque du Liban was formally established as the central bank of the Lebanese Republic.
1964
The Central Bank Begins Operations
Banque du Liban began operations and assumed responsibility for currency issuance and monetary policy.
1990–1997
Reconstruction
1990
End of the Lebanese Civil War
The end of armed conflict and the start of state rebuilding — but with weak institutions and an exhausted economy.
1992
Rise of Rafic Hariri
Launch of an economic model built on reconstruction, capital inflows, and reliance on services (banks, tourism).
1997–2005
Consolidating Stability
1997
Currency peg by Banque du Liban
A long stretch of monetary stability — built on attracting dollars at high interest rates, which steadily inflated public debt.
2005–2011
Political Pressures
2005
Assassination of Rafic Hariri
A major political shock that triggered internal division, capital flight, and a sharp drop in confidence.
2006
2006 Lebanon War
Damage to infrastructure and a sharp downturn in economic activity, especially tourism.
2011–2016
The Beginning of Imbalance
2011
Spillover from the Syrian war
Economic pressure from displacement, falling exports, and shrinking tourism — widening the deficit.
2016–2019
Financial Engineering
2019–2020
Collapse
2019
2019 Lebanese protests
An eruption of public anger over corruption and crisis — and the start of lost trust in the banks and the financial system.
2020
Beirut port explosion + sovereign default
A double blow: massive economic destruction and the collapse of international confidence, with huge losses across the banking sector.
2020–2026
After the Blast
2021
Removal of subsidies
Sharp price rises (inflation) and acute living-cost crises in fuel, medicine, and electricity.
2022
Multiple exchange rates
Different dollar rates emerged (official, platform, black market), causing economic chaos and price distortion.
2023
Continued political vacuum
Absence of reforms and continued loss of trust, with the informal economy expanding.
2024
Dollarization entrenched
Most transactions moved to dollars; the lira's role as a usable currency declined sharply.
2025
Banking sector decline
The role of banks in lending and the broader economy weakened, with people leaning more on direct cash.
2026
Cash economy
Widespread reliance on cash payments outside the banking system, with the absence of full financial stability.