The Lebanese Central Bank’s balance sheet conveys some $63.45 million appreciation in BDL’s foreign assets portfolio during the first half of December 2022 to $15.25 billion, up from $15.19 billion a fortnight earlier. When factoring out the portfolio of Lebanese Eurobonds held by the Central Bank amounting to $5.03 billion, the latter’s foreign currency reserves would settle at $10.22 billion. Similarly, the value of gold reserves at BDL rose by 0.95% ($154.20 million) in the first half of December to $16.38 billion as gold prices increased amid market expectations of a 75% chance of a 25 basis point interest rate hike by the US Federal Reserve against a 25% chance of a 50 basis point increase.

On an annual basis, BDL’s foreign assets came in 15.69% ($2.84 billion) lower than the $18.09 billion reading reported at mid-December 2021. On the other hand, the value of gold reserves settled 0.47% ($0.08 billion) higher when benchmarked to the $16.31 billion figure recorded in the same period in 2021.

In a related note, BDL’s balance sheet widened by 1.10% ($2.06 billion) on a biweekly basis to $189.65 billion as the value of other assets (representing capitalized open market operations and seigniorage) rose by $2.19 billion (2.12%) to $105.50 billion which was met by a 3.36% expansion in currency in circulation outside BDL. This increase can be attributed to the printing of some LBP 2.43 trillion in LBP banknotes used to purchase USD banknotes at the black market rate to replenish part of FX reserves. The increase in other assets was accompanied by a 0.95% rise in the value of gold reserves to $16.38 billion and some 0.42% appreciation in the value of foreign assets to $15.25 billion, altogether outweighing the 0.72% decrease in loans to the local financial sector to $11.96 billion and the 0.63% drop in the value of the securities portfolio to $40.26 billion.

The share of BDL’s foreign assets of the latter’s total assets decreased to 8.04% as at mid-December 2022, compared to 8.10% a fortnight earlier, with that of gold reserves concurrently dropping to 8.64%, down from 8.65% two weeks earlier. On the other hand, the share of other assets rose to 55.63% of BDL’s total balance sheet up from 55.08% two weeks earlier.