BDL’s Foreign Assets increased in the last two weeks of October

According to the balance sheet of Banque du Liban (BDL), the central bank’s total assets added 16.4% compared to last year, to reach $188.29B by end of October 2022. The increase was mainly due to the 55.44% year-on-year (YOY) rise in other assets, grasping 49.09% of BDL’s total assets and reaching $92.43B by end of October 2022. Furthermore, the gold account, representing 8.42% of BDL’s total assets, decreased by 8.42% yearly to reach $15.14B by end of October 2022.

Moreover, BDL’s foreign assets, consisting of 8.11% of total assets, recorded a drop of 18.17% YOY and stood at $15.28B by end of October 2022, noting that BDL holds in its foreign assets $5B in Lebanese Eurobonds. Meanwhile, total volume of dollars injected into the market through Sayrafa platform reached $506M in the last two weeks of October, however, the foreign assets of BDL added $239.34M during the same period. Therefore, the Central Bank has been absorbing from the market the total of $745.34M during this period. In more details, Sayrafa traded volume reached $10,065M since year start, whereas BDL’s foreign assets seem to have decreased at a slower path as they declined by $2.55B only.

On the liabilities front, financial sector deposits, representing 56.84% of BDL’s total liabilities, decreased by 0.12% and reached $107.02B by end of October 2022 compared to last year, of which more than two thirds are denominated in dollars.

Lastly, currency in Circulation outside of BDL, consisting of 26.44% of BDL’s total liabilities, added 64% since year start and 76.51% annually to reach $49.79B by end of October 2022. Interesting to note, the increase of currency in circulation has coincided with a jump in other assets. In the last two weeks of October, other assets added LBP 5.73T while currency in circulation increased by LBP 5.25T.

BDL Total, Foreign assets and Currency in Circulation by end of October ($B):

BDL’s Foreign Assets increased in the last two weeks of October

Source: BDL, Blominvest

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