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Lebanon.. Central Bank confirms the safety of gold reserves

12 July 2021

It amounts to 286.8 tons, according to the World Gold Council, worth $17 billion at current prices

The Central Bank of Lebanon reassured, on Monday, the safety of the country's gold reserves, despite the unprecedented financial and economic crisis that has beset it.The Central Bank of Lebanon said, in a statement reported by the official National Media Agency, that the gold reserve is “not subject to any mortgage or pledge, as some dream with the aim of continuing to flood Lebanon and harnessing its properties for purposes that harm it and do not serve its interests at all.”Lebanon owns 286.8 tons of gold, and ranks 20th globally in reserves of the precious metal, according to a report issued by the World Gold Council in March 2021, equivalent to about $17 billion at current prices (1804 dollars per ounce).

The Central Bank of Lebanon confirmed in its statement, today, that it will also maintain the mandatory reserve for banks operating in the country, equivalent to 15 percent of total deposits.On August 27, 2020, the Governor of the Banque du Liban, Riad Salameh, said that the mandatory reserve is about $17.5 billion, and since then, the Central Bank has not updated this figure.

Lebanon is suffering the worst economic crisis since the end of the civil war (1975-1990), and the crisis has led to an unprecedented financial collapse, a shortage of fuel and medicine, and an increase in food prices, as well as a record rise in poverty rates.The crisis is exacerbated by political differences that prevent the formation of a new government to succeed the caretaker government headed by Hassan Diab, which resigned 6 days after the explosion in the port of Beirut on August 4, 2020.