The Lebanese Central Bank’s balance sheet conveys some $65.96 million contraction (0.46%) in BDL’s foreign assets portfolio during the second half of March 2023 to $14.41 billion (LBP 216.14 trillion), down from $14.48 billion (LBP 217.13 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 $9.38 billion (LBP 140.69 trillion). On the other hand, the value of gold reserves at BDL rose by 3.68% ($647.04 million) in the second half of March to $18.23 billion (LBP 273.40 trillion) as gold prices increased amid expectations that the US Federal Reserves will abstain from increasing interest rates in its upcoming meeting in May.

On an annual basis, BDL’s foreign assets came in 12.57% ($2.07 billion) lower than the $16.48 billion reading reported at end of March 2022. Conversely, the value of gold reserves settled 2.72% ($0.48 billion) higher when benchmarked to the $17.74 billion figure recorded in the same period in 2022.

In a related note, BDL’s balance sheet rose by 0.09% on a bi-weekly basis to LBP 1,520.29 trillion. This owes to the 1.72% (LBP 2.56 trillion) increase in the value of other assets (representing capitalized open market operations and seigniorage) to LBP 151.20 trillion and the 3.68% rise in the value of gold reserves, altogether outweighing the 0.46% contraction in the value of foreign assets, the 1.06% decrease in loans to the financial sector to LBP 16.70 trillion and the 0.19% drop in the value of the securities portfolio to LBP 67.82 trillion.

The share of BDL’s foreign assets of the latter’s total balance sheet stood at 14.22% as at end of March 2023 while that of gold reserves, valuation adjustment, and loans to the public sector reached 17.98%, 34.75%, and 16.33% respectively.