Following the recent appointment of Karim Souaid as the governor of Lebanon’s Central Bank, Banque Du Liban (BDL), on March 27, 2025, a central debate has emerged regarding the potential use of the nation’s significant gold reserves. These reserves, valued at $28.34 billion at the end of March 2025 and constituting 30.28% of the BDL’s total assets, position Lebanon as the 21st largest gold reserve holder globally and 2nd in the MENA region. In light of this, Governor Souaid has suggested investing a portion of these assets to provide liquidity for depositors, while firmly rejecting their sale. This proposal prompts crucial considerations regarding how the BDL might leverage its gold holdings to aid Lebanon’s financial recovery, pending parliamentary approval.
In this analysis, we will discuss the costs of keeping gold reserves inactive, the downsides of selling them, key investment options beyond selling, and the potential risks associated with these investment strategies, drawing on international case studies to offer valuable perspectives for Lebanon.
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