The Lebanese Central Bank’s balance sheet conveys some $260.45 million contraction (1.77%) in BDL’s foreign assets portfolio during the first half of March 2023 to $14.48 billion (LBP 217.13 trillion), down from $14.74 billion (LBP 221.03 trillion) 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 $9.45 billion (LBP 141.68 trillion). On the other hand, the value of gold reserves at BDL rose by 5.29% ($883.41 million) in the first half of March to $17.58 billion (LBP 263.69 trillion) as gold prices increased amid growing fears of a more chaotic environment following the collapse of Silicon Valley Bank in the United States coupled with the Federal Reserve’s review of its interest rate hike policy before its upcoming meeting on March 22, 2023.

On an annual basis, BDL’s foreign assets came in 12.72% ($2.11 billion) lower than the $16.58 billion reading reported at mid-March 2022. Similarly, the value of gold reserves settled 1.22% ($216.36 million) lower when benchmarked to the $17.80 billion figure recorded in the same period in 2022.

In a related note, BDL’s balance sheet fell by 0.62% on a bi-weekly basis to LBP 1,518.95 trillion. This owes to the 3.60% (LBP 5.54 trillion) decrease in the value of other assets (representing capitalized open market operations and seigniorage) to LBP 148.64 trillion, coupled with the 1.77% contraction in the value of foreign assets and the 1.47% decrease in loans to the financial sector to LBP 16.88 trillion altogether outweighing the 5.29% rise in the value of gold reserves.

The share of BDL’s foreign assets of the latter’s total balance sheet stood at 14.29% as at mid-March 2023 while that of gold reserves, valuation adjustment, and loans to the public sector reached 17.36%, 35.42%, and 16.33% respectively.