According to the balance sheet of Banque du Liban (BDL), the central bank’s total assets added 6.5% compared to last year, to reach $169.4B by mid-September 2022. The increase was mainly due to the 26.02% year-on-year (YOY) rise in other assets, grasping 42.84% of BDL’s total assets and reaching $72.58B by mid-September 2022. Furthermore, the gold account, representing 9.19% of BDL’s total assets, decreased by 6.28% yearly to reach $15.57B by mid-September 2022.
Meanwhile, BDL’s foreign assets, consisting of 8.63% of total assets, recorded a drop of 18.45% YTD and stood at $14.62B by mid-September 2022, noting that BDL holds in its foreign assets $5B in Lebanese Eurobonds. Moreover, total volume of dollars injected into the market through Sayrafa platform reached $443M in the first two weeks of September, while foreign assets of BDL dropped by $124.75M during the same period. It is important to note that Sayrafa traded volume reached $8.64B since year start, whereas BDL’s foreign assets seem to have decreased at a slower path as they decreased by $3.2B only. However, the Central Bank’s intervention into the market through Sayrafa remains costly and continues to pose a burden on the exchange rate. As a result, foreign reserves are persistently declining and the parallel exchange rate has reached 38,000 LBP per USD. Therefore, the Government must urgently implement a series of reforms in order to ensure the recovery of the Lebanese economy.
On the liabilities front, financial sector deposits, representing 63.62% of BDL’s total liabilities, increased by 1.44% and reached $107.78B by mid-September 2022 compared to last year, of which more than two thirds are denominated in dollars.
Currency in Circulation outside of BDL, consisting of 17.66% of BDL’s total liabilities, increased annually by 9.63% and reached $29.92B by mid-September 2022.
BDL Total, Foreign assets and Currency in Circulation by mid-September ($B)
Source: BDL, BLOMINVEST