A wave of anxiety has gripped Lebanon following reports of counterfeit $50 bills flooding the market. While theories abound regarding the motive behind the spread of these counterfeit notes, the primary outcome has been an opportunity for currency exchangers to profit from exaggerated public concern. This has triggered unjustified practices, including the imposition of unwarranted fees and the perpetuation of fear around counterfeit bills.

The Origins of the Crisis

Reports of counterfeit $50 bills surfaced days ago, leading to a near-immediate halt in the acceptance of these notes by banks, financial institutions, and currency exchangers. The primary reason cited was that existing counterfeit detection machines were unable to identify the forgeries. While some companies and banks swiftly updated their detection systems to resume transactions involving $50 notes, many institutions have continued to suspend dealings with this denomination.

This ongoing suspension persists despite reassurances from Lebanon’s Internal Security Forces (ISF) and the Money Changers’ Syndicate. The ISF clarified in a statement that the counterfeit issue was limited to a small number of bills, while the Syndicate confirmed the concern was greatly overstated. They emphasized that licensed currency exchangers are experienced enough to differentiate between genuine and fake bills.

Exaggerated Fears Turn into Opportunity

Rather than alleviating concerns, many licensed currency exchangers have taken advantage of the public's anxiety to impose arbitrary and excessive fees on transactions involving $50 notes, a report by Al-Modon indicated. This practice is especially troubling, given that these exchangers, as licensed professionals, are expected to set an example in combating counterfeit currency.

Professional exchangers, skilled in recognizing counterfeit bills, have instead exploited the situation by charging fees ranging from $3 to $7—equivalent to 6–14% of the bill’s value—under the pretense of "risk management."

These actions lack any legitimate justification. If a bill is suspected to be counterfeit, the exchanger is obligated to verify its authenticity and report it to the authorities. The ISF continues to monitor counterfeit activity, and any genuine discovery of fake currency should be handled through proper channels. However, if the bill is authentic, there is no basis for imposing additional charges.

The act of charging a percentage fee on $50 bills, simply by exploiting fear, amounts to theft conducted openly. Both the Money Changers’ Syndicate and law enforcement agencies have been criticized for failing to address these exploitative practices.

Forced Payment in Lebanese Pounds

The exploitation extends beyond arbitrary fees. Many exchangers are now requiring customers to pay exclusively in Lebanese pounds, refusing smaller dollar denominations under the guise of lacking smaller bills. This tactic enables exchangers to manipulate exchange rates in their favor, profiting from the discrepancy between buying and selling rates.

By offering customers exchange rates below the market rate, exchangers force clients to accept unfavorable terms out of fear that their $50 bill will be rejected. This practice further deepens public anxiety and underscores the exploitative environment surrounding the crisis.