Banque Du Liban recently launched its Annual Report for the year 2025 where it estimated the Lebanese economy to have grown by 3.8% in 2025, compared to an economic contraction of 6.4% in 2024. BDL commented that the Lebanese economy faced a host of challenges for the sixth year in a row, noting that the repercussions of the Israeli war continued throughout 2025, with physical damages estimated $6.8 billion and economic losses attaining $7.2 billion as per World Bank estimates, exceeding 50% of GDP, while recovery and reconstruction needs were estimated at $11 billion. BDL, nevertheless, commented that the year 2025 witnessed some positive developments, with the election of a President of the Republic, the formation of a new government and the appointment of a new BDL Governor, coupled with signs of renewed confidence and improved economic and financial conditions. BDL added that the balance of payments (change in the net foreign assets of the financial sector) recorded a surplus of $19.56 billion in 2025 ($6.44 billion surplus in 2024), with the balance of trade deficit attaining $17.4 billion (22.5% higher than the $14.2 billion deficit recorded in 2024) on the back of some 24.7% rise in imports to $21.1 billion which outweighed the 34.5% increase in exports to $3.6 billion. The annual report also uncovered that remittances from expatriates have reached $6.3 billion in 2025 compared to $6.8 billion in 2024. On the monetary level, BDL commented that the exchange rate remained stable throughout the year 2025 at around LBP 89,550/USD even amid heightened pressures stemming from security developments. The Central Bank attributed the stability of the exchange rate to its strict monetary policy which pivoted around controlling money supply and curbing BDL financing of the government. Foreign currency reserves at BDL increased by 16.8% in 2025 to $11.8 billion ($10.1 billion in 2024), while the value of gold reserves added 67.5% to ~$40.4 billion ($24.1 billion in 2024) as global gold prices skyrocketed. BDL strived to achieve a delicate equilibrium between maintaining the stability of the financial system by adopting a comprehensive macro prudential regulatory policy aimed at reducing systemic risks, and mitigating the effects of the crisis on production, monetary stability, and prices through conventional and unconventional monetary policy tools, particularly by supporting the exchange rate upon the request of the government. The Central Bank also highlighted that it worked on ensuring the stability of the banking and financial sectors during this period of stagnation and high uncertainty, awaiting the launch of the banking sector reform and restructuring phase. Furthermore, the BDL commented that it focused in 2025 on improving payment and transfer systems, managing liquidity, reducing inflation rates, and contributing to public debt management. It added that the banking sector's resumption of its effective role hinges on finding comprehensive solutions namely the adoption of reform legislation, the reorganization of public finances, addressing the issue of deposits, reinstating confidence and restoring the flow of liquidity to banks. BDL unveiled the list of tools it utilized to execute its monetary policy as highlighted below:

-        Maintaining monetary stability: The improvement in the political environment in 2025 contributed to strengthening monetary and banking stability, with liquid foreign assets increasing by around $2 billion to $12 billion, while Lebanese Eurobond prices increased from 12.8 cents on the Dollar at end of 2024 to 23.25 cents on the Dollar at end of 2025. The Central Bank also continued disbursing payments to depositors under the provision of BDL circulars averaging $125 million per month, while adopting a cautious approach to managing its foreign reserves.

-        Relative Stability in Interest Rates: The interest rates on LBP loans and deposits increased by 529 and 10 basis points in 2025 on a respective basis, while that on USD loans decreased by 2 basis points and the interest rate on USD deposits added 6 basis points.

-        Striving to enhance confidence in the national currency by controlling LBP money supply: Currency in circulation in LBP increased by 9.1% in 2025 to LBP 71.53 trillion, compared to a 12.9% increase in 2024.

-        Securing a safe and developed local payment system: BDL continued its mission to modernize, develop, and supervise payment systems and align them with best international standards. BDL also completed the modernization of its BDL-RTGS and BDL-Clear systems through the adoption of the ISO 20022 standard, while following up on instant payment systems, mobile banking, cheque truncation, and digital currencies.

-        Managing excess liquidity, securing funding sources for the state & managing public debt: The Ministry of Finance has halted the issuance of treasury bills and BDL did not issue new long-term Certificates of Deposits (LBP and foreign currencies) in 2025, while continuing to settle outstanding coupons and maturities. The face value of maturing treasury bill reached LBP 23.47 trillion in 2025, while the outstanding value of LBP-denominated CDs and term deposits at BDL reached LBP 31.59 trillion (compared to LBP 34.07 trillion in 2024) and LBP 16.88 trillion (up from LBP 15.50 trillion in 2024) on a respective basis. BDL also booked property rental revenues of $195,600 in fresh US Dollar in 2025 in addition to collecting some $109.15 million and $0.72 million in fresh dividend income from Middle East Airlines and the Arab Investment Company on a respective basis. It added that it collected some $3 million and $841,773 in local dollars from Azure Fund and Phoenician Fund I respectively, in addition to $164,934 and $54,803 in fresh US Dollar from Berytech Fund II and Leap Investments I respectively under the framework of BDL circular 331.

The annual report also listed a set of circulars issued and amended by BDL during the year 2025 such as amendments to basic circulars 158 and 166 (related to the gradual repayment of foreign currency deposits), raising the annual withdrawal ceilings to $12,000 and $6,000 respectively. In addition, BDL reduced the mandatory reserve requirement on USD deposits from 14% to 11% in an attempt to secure the required liquidity to depositors benefitting from the provision of circulars 158 and 166. BDL also extended the waiver of the capital conservation buffer of 2.5% when calculating banks solvency ratios during the year 2025, extended the deadline to meet the 3% foreign liquidity ratio till June 30, 2026, and allowed banks which are compliant with the 100% fresh foreign currency funds coverage ratio to sell Lebanese Eurobonds, provided the proceeds are used primarily to secure liquidity for payments under circular 158 for one year and to finance commercial and investment activities, rather than operating expenses.