Lebanon: Experts Call for Selling Part of Gold Reserves to Restructure Economy

FILE PHOTO: Gold bullion is displayed at Hatton Garden Metals precious metal dealers in London, Britain July 21, 2015. REUTERS/Neil Hall/File Photo
FILE PHOTO: Gold bullion is displayed at Hatton Garden Metals precious metal dealers in London, Britain July 21, 2015. REUTERS/Neil Hall/File Photo
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Lebanon: Experts Call for Selling Part of Gold Reserves to Restructure Economy

FILE PHOTO: Gold bullion is displayed at Hatton Garden Metals precious metal dealers in London, Britain July 21, 2015. REUTERS/Neil Hall/File Photo
FILE PHOTO: Gold bullion is displayed at Hatton Garden Metals precious metal dealers in London, Britain July 21, 2015. REUTERS/Neil Hall/File Photo

With the deterioration of economic conditions to unprecedented levels, Lebanese officials are looking into the possibility to rescheduling the public debt and to set up plans with the International Monetary Fund (IMF) to revitalize the economy.

Attention is also turning to the country’s gold reserves, which have so far been regarded as a red line and the sole guarantee for the stability of the local currency against the US dollar.

A few years ago, talks about selling gold reserves to pay part of the public debt constituted a taboo. Today, economic and financial experts are proposing it to stop a financial collapse.

The president of Information International - a Beirut-based research and statistics company – said: “It is time to think about using gold to restructure the economy, protect people and preserve our sovereignty, provided that we do not waste it to pay the debt or to finance squandering; it should be part of a comprehensive plan.”

“Why don’t we start with gold in New York?”, referring to some part of Lebanon’s gold reserves in the United States.

Ghassan Ayyash, former deputy governor of the central bank pointed out that for a long time, gold reserves were seen as a guarantee of the Lebanese pound and its stability.

“This was true when the size of gold was proportional to the size of the monetary mass and the existing GDP, and when the global monetary system was based on gold coverage of currencies,” he told Asharq Al-Awsat.

He continued: “As the size of the monetary mass has swelled and the coverage in gold has become insufficient, there is no doubt that the gold reserve is no longer a guarantee for the currency peg.”

Ayyash noted that selling a portion of it, after a large part of the reserves in foreign currencies was wasted, “might partly help rebuild the cash reserve of the central bank, which was used to finance the trade balance and the demand for foreign currencies.”

“If we sell a portion of gold for about $7 billion within a comprehensive reform program, this may be part of the solution, even if we still need banks,” he remarked.

Ironically, Lebanon, which tops the list of indebted countries in the world in proportion to its GDP after Japan, is among the first twenty states worldwide that possess the largest reserves of gold, about 286.6 tons of gold valued at $16 billion.

Lebanon began collecting gold a few years after the independence in 1943 until 1971. With the outbreak of the civil war in 1975, Lebanon transferred to the US State of Kentucky part of its gold reserves to protect it, as many other countries did.



US Close to Several Trade Deals, Announcements to be Made in Next Days, Bessent Says

US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo
US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo
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US Close to Several Trade Deals, Announcements to be Made in Next Days, Bessent Says

US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo
US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo

The United States is close to clinching several trade deals ahead of a July 9 deadline when higher tariffs kick in, US Treasury Secretary Scott Bessent said on Sunday, predicting several big announcements in coming days.

Bessent told CNN's "State of the Union" the Trump administration would also send out letters to 100 smaller countries with whom the US doesn't have much trade, notifying them that they would face higher tariff rates first set on April 2 and then suspended until July 9.

"President Trump's going to be sending letters to some of our trading partners saying that if you don't move things along, then on August 1 you will boomerang back to your April 2 tariff level. So I think we're going to see a lot of deals very quickly," Bessent said.

Bessent denied that August 1 was a new deadline for negotiations. "We are saying this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice," he told CNN, Reuters reported.

The US Treasury chief said the Trump administration was focused on 18 important trading partners that account for 95% of the US trade deficit. But he said there had been "a lot of foot-dragging" among countries in getting closure on a trade deal.

He declined to name countries that were close to a trade agreement, adding, "because I don't want to let them off the hook."

Trump has repeatedly said India is close to signing a deal and expressed hope that an agreement could be reached with the European Union, while casting doubt on a deal with Japan.

Since taking office, the US president has set off a global trade war that has upended financial markets and sent policymakers scrambling to guard their economies, including through deals with the US and other countries.

Trump on April 2 announced a 10% base tariff rate and additional amounts for most countries, some ranging as high as 50%. The news roiled financial markets, prompting Trump to suspend all but the 10% base rate for 90 days to allow more time for negotiations to secure deals, but the process has proven more challenging than expected.

That period ends on July 9, although Trump early on Friday said the tariffs could be even higher - ranging up to 70% - with most set to go into effect August 1.

Bessent, asked about the 70% rate, referred back to the April 2 list, but that did not include such high rates.