Lebanese Central Bank Rejects Proposals to Invest Gold Reserves

A visitor examines the weight of a gold bar at the Banque du Liban Currency Museum (Banque du Liban website).
A visitor examines the weight of a gold bar at the Banque du Liban Currency Museum (Banque du Liban website).
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Lebanese Central Bank Rejects Proposals to Invest Gold Reserves

A visitor examines the weight of a gold bar at the Banque du Liban Currency Museum (Banque du Liban website).
A visitor examines the weight of a gold bar at the Banque du Liban Currency Museum (Banque du Liban website).

The sharp rise in the market value of Lebanon’s gold reserves has sparked renewed debate over their potential use to support the country’s financial recovery. However, the central bank remains firm in its stance against any move to liquidate or invest the reserves, citing strict legal restrictions and the risks of mismanagement.
A senior financial official, speaking to Asharq Al-Awsat, acknowledged the significance of these discussions, particularly as the central bank’s updated figures estimate Lebanon’s gold holdings at around $28 billion. However, he emphasized that before considering any new policies, a full qualitative audit of the reserves is necessary to determine their exact value, weight, and historical origins.
Lebanon officially holds approximately 286.8 tons of gold, or 9.25 million ounces. This reserve was accumulated under the 1963 Monetary and Credit Law to back the Lebanese lira. Currently, two-thirds of the gold is stored securely at the central bank in Beirut, while the remaining third is held at Fort Knox in the United States.
Despite the growing interest in leveraging this asset, Lebanese law strictly prohibits any direct or indirect transaction involving the gold. Law No. 42 of 1986 mandates that any sale, leasing, or investment of the reserves must receive explicit approval from Parliament. Acting Central Bank Governor Dr. Wassim Mansouri has reaffirmed this restriction, stating unequivocally: “No matter what happens, I will not sign off on moving even a gram of gold.”
Mansouri also highlighted the dangers of using reserves irresponsibly. Before Lebanon’s financial collapse in late 2019, the central bank held around $33 billion in foreign currency reserves, while gold reserves were valued at $16 billion. The cash reserves were largely depleted through unsustainable subsidy programs, leaving only $8.5 billion today. “We lost one and a half times the value of our gold, and it didn’t solve anything. The idea of using gold is simply not an option,” he said.
While some policymakers argue that investing the gold could generate much-needed revenue, financial experts warn that without proper governance, such a move could lead to further mismanagement. Instead, they stress the need for deeper economic and institutional reforms.
A key priority is securing an agreement with the International Monetary Fund (IMF) to ensure financial discipline, transparency, and oversight. Any decision regarding the gold reserves would require parliamentary approval and a clear, well-justified plan. However, financial experts argue that Lebanon already possesses vast state-owned assets that, if managed properly, could help close the country’s estimated $72 billion financial gap.
These assets include coastal and riverfront properties, 850 million square meters of state-owned land, high-value real estate in Beirut and other cities, as well as key infrastructure such as electricity, water, telecommunications, ports, and transport networks. Many of these resources remain underutilized due to corruption and inefficiency.

 



US to Impose Sanctions on Sudan After Finding Government Used Chemical Weapons 

People transport their belongings as they return to Salha, south of Omdurman, two days after the Sudanese army recaptured it from the paramilitary Rapid Support Forces (RSF), on May 22, 2025. (AFP)
People transport their belongings as they return to Salha, south of Omdurman, two days after the Sudanese army recaptured it from the paramilitary Rapid Support Forces (RSF), on May 22, 2025. (AFP)
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US to Impose Sanctions on Sudan After Finding Government Used Chemical Weapons 

People transport their belongings as they return to Salha, south of Omdurman, two days after the Sudanese army recaptured it from the paramilitary Rapid Support Forces (RSF), on May 22, 2025. (AFP)
People transport their belongings as they return to Salha, south of Omdurman, two days after the Sudanese army recaptured it from the paramilitary Rapid Support Forces (RSF), on May 22, 2025. (AFP)

The United States said on Thursday it would impose sanctions on Sudan after determining that its government used chemical weapons in 2024 during the army's conflict with the paramilitary Rapid Support Forces, a charge the army denied.

Measures against Sudan will include limits on US exports and US government lines of credit and will take effect around June 6, after Congress was notified on Thursday, State Department spokesperson Tammy Bruce said in a statement.

"The United States calls on the Government of Sudan to cease all chemical weapons use and uphold its obligations under the CWC," Bruce said, referring to the Chemical Weapons Convention treaty banning the use of such weapons.

In a statement, Sudan rejected the move, and described the allegations as false.

"This interference, which lacks any moral or legal basis, deprives Washington of what is left of its credibility and closes the door to any influence in Sudan," government spokesperson Khalid al-Eisir said on Friday.

The war in Sudan erupted in April 2023 from a power struggle between the army and the RSF, unleashing waves of ethnic violence, creating the world's worst humanitarian crisis and plunging several areas into famine. Tens of thousands of people have been killed and about 13 million displaced.

Washington in January imposed sanctions on army chief Abdel Fattah al-Burhan, accusing him of choosing war over negotiations to bring an end to the conflict.

The US has also determined members of the RSF and allied militias committed genocide and imposed sanctions on some of the group's leadership, including RSF leader General Mohamed Hamdan Dagalo, known as Hemedti.

Bruce's statement said the US had formally determined on April 24 under the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 that the government of Sudan used chemical weapons last year, but did not specify what weapons were used, precisely when or where.

"The United States remains fully committed to hold to account those responsible for contributing to chemical weapons proliferation," Bruce said.