According to the balance sheet of Banque du Liban (BDL), the central bank’s total assets fell by 38.20% compared to last year, to reach $104.69B by mid of September 2023. The fall was mainly due to the 90.44% year-on-year (YOY) drop in other assets, grasping 6.63% of BDL’s total assets and reaching $6.B by mid of September 2023. Furthermore, the gold account, representing 16.90% of BDL’s total assets, increased by 13.61% yearly to reach $17.68B by mid of September 2023.
BDL’s foreign assets, consisting of 13.31% of total assets dropped by 4.68% YOY and stood at $13.93B by mid of September 2023 of which liquid foreign reserve assets totaled $8.727B ($8.573B as at 31/07/2023), noting that BDL holds in its foreign assets $5.2B in Lebanese Eurobonds. In parallel, interestingly, other liabilities plunged by 74.49% years over year to stand at $1.11B by mid of September 2023.
On the liabilities front, financial sector deposits, representing 84.81% of BDL’s total liabilities, decreased by 17.62% and reached $88.78B by mid of September 2023 compared to last year, of which more than 90% are denominated in dollars. Lastly, currency in Circulation outside of BDL, consisting of 3.90% of BDL’s total liabilities, plunged by 86.37% annually to reach $4.07B by mid of September 2023 amid adopting the 15,000 LBP/USD official rates by BDL.
Interesting to note, a statement issued on 18/9/2023 by Acting BDL Governor, Dr Wassim Mansouri, claimed that BDL liquid FX reserve assets stood at $8.498B at end August 2023, down from $8.573B declared previously in July 2023, with current accounts stood at $3.238B up from $3.114B at 31/07/2023, time accounts reached $3.490B while financial securities added 10.09% to $240M by end of August 2023. Furthermore, BDL stated that the Eurobonds at market value were $413M in August 2023, up from $387M in July 2023.
On the other flip, the statement showed that liquid FX reserve liabilities were $1.279B by August 2023, up from the $1.270B in July 2023 with SDR balance available for use dropping from $125M to $76M by end of August 2023 while Banks’ deposits in fresh dollar increased to $14M and the public sector deposits in fresh dollar expanded from $275M to $328M by end of August 2023.
BDL Total, Foreign assets and Currency in Circulation by mid of September 2023 ($B):
Source: BDL, Blominvest
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