According to the balance sheet of Banque du Liban (BDL), the central bank’s total assets fell by 8.39% compared to last year, to reach $93.34B by end of February 2024, amid adopting the 89,500 LBP/USD official rate by BDL since February 1st 2024. The fall was mainly due to the 99.07% year-on-year (YOY) drop in other assets and reached $95.58M by end of February 2024 compared to $10,279M by February 28, 2023. Interesting to mention that based on Central Council decision number 23/36/45 dated 20/12/2023, all previous Central Council decisions related to Seigniorage were suspended and all deferred interest costs emanating from open-market operations were presented under a new line item. As a result, all deferred interest costs included in Other Assets and Assets from Exchange Operations amounting to LBP 118.97 Trillion as of 31/12/2023 were transferred to “Deferred Open-Market Operations”.
Furthermore, the gold account, representing 20.08% of BDL’s total assets, increased by 12.28% yearly to reach $18.75B by end of February 2024. Additionally, BDL’s foreign assets, consisting of 15.84% of total assets, slightly rose by 0.33% YOY and stood at $14.78B by end of February 2024, increasing by $129M from mid of February 2024. Noting that BDL holds in its foreign assets $5B in Lebanese Eurobonds. Interesting to note that since end of July 2023, foreign assets have increased by close to $1B.
On the liabilities front, financial sector deposits, representing 93.24% of BDL’s total liabilities, decreased by 2.99% and reached $87B by end of February 2024 compared to last year, of which more than 90% are denominated in dollars. Lastly, currency in Circulation outside of BDL, consisting of 0.68% of BDL’s total liabilities, plunged by 88.57% annually to reach $635M by end of February 2024 amid adopting the 89,500 LBP/USD official rate by BDL.
BDL Total assets, Foreign assets and Currency in Circulation by end of February 2024 ($B):
Source: BDL, Blominvest
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