The Lebanese Central Bank’s balance sheet conveys some $57.19 million increase in BDL’s foreign assets portfolio during the second half of July 2022 to $15.17 billion, up from $15.11 billion a fortnight earlier. When factoring the portfolio of Lebanese Eurobonds held by the Central Bank amounting to $5.03 billion, the latter’s foreign currency reserves would settle at $10.14 billion by end of July. Similarly, the value of gold reserves at BDL rose by 3.49% ($548.64 million) in the second half of July to $16.27 billion as gold prices increased amid a 0.9% drop in the US GDP during the second quarter of 2022, missing market estimates of a 0.4% rise.

On an annual basis, BDL’s foreign assets came in 24.37% ($4.89 billion) lower than the $20.06 billion reading reported at end of July 2021. Similarly, the value of gold reserves came in 3.58% ($0.60 billion) lower when benchmarked to the $16.87 billion figure recorded in the same period in 2021. It is worth noting that BDL’s total reserves (foreign currency and gold) cover some 171 months of debt service and constitute around 26.24% and 30.38% of Lebanon’s gross and net public debt on a respective basis.

In a related note, BDL’s balance sheet widened by $2.30 billion during the second half of July 2022 to $169.42 billion on the back of the 2.20% ($1.77 billion) increase in the value of other assets (representing capitalized open market operations and seigniorage) to $82.48 billion, coupled with the 3.49% rise in the value of gold reserves to $16.27 billion and the 0.38% increase in the value of foreign assets to $15.17 billion, altogether outweighing the 0.15% decrease in the value of the securities portfolio to $41.91 billion and the 0.10% drop in loans to the local financial sector to $13.30 billion.

The share of BDL’s foreign assets of the latter’s total assets decreased to 8.95% as at end of July 2022, compared to 9.04% a fortnight earlier, while that of gold reserves rose to 9.60%, up from 9.41% as at mid-July. The share of other assets extended its upturn, reaching 48.68% of BDL’s total balance sheet by end of July 2022, up from 48.29% two weeks earlier.