Turning Gold into Growth: Analysis and Critique

Lebanon’s prolonged financial crisis has reignited debate over the country’s gold reserves, with questions over whether they should remain untouched, be used to stimulate economic growth, or serve as a means of compensating depositors. In this context, Dr. Saade Chami, former Deputy Prime Minister and IMF economist, authored Managing Lebanon’s Gold: Governance, Growth, and Financial Recovery, published by the Issam Fares Institute for Public Policy and International Affairs at the American University of Beirut in March 2026. The paper reframes the debate by shifting the focus from whether gold should be used to the more critical issue of how it should be governed and strategically deployed in support of long‑term recovery and sustainable growth. Importantly, it cautions that channeling gold to cover financial sector losses could undermine fairness and legitimacy, while also decreasing the pressure for essential structural reforms needed to restore lasting financial stability.

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