Banque du Liban (BDL), Lebanon’s central bank, released its Annual Report for 2024, providing a detailed overview of the country’s economic and monetary landscape. The report, structured into five comprehensive sections, covers the general economic situation, monetary policy frameworks, currency issuance, and the central bank’s financial position.
1. Gold Reserves Surge in Value
One of the most striking highlights in this year’s report is the sharp rise in gold prices. The price per ounce jumped from $2,063 in 2023 to $2,624 in 2024, raising the total value of Lebanon’s gold reserves to over $5 billion. This increase comes as global markets leaned on gold as a hedge against instability, positively impacting Lebanon’s foreign reserve outlook.
2. No Treasury Bond Issuance for the Second Year
Due to Lebanon’s ongoing financial crisis, BDL once again refrained from issuing treasury bonds, marking the second consecutive year without such activity. This move reflects cautious monetary management amid a fragile economic recovery.
Nevertheless, the central bank continued to support the economy through direct lending across sectors, resulting in a dramatic increase in total loans issued.
3. Total Loans Skyrocket — Up 5.64×
The volume of loans granted by BDL surged by 5.64 times compared to 2023. Breakdown by sector:
- Public sector loans: increased from 249,203,331 LBP in 2023 to 1,486,942,711 LBP in 2024
- Financial sector loans: rose from 21,270,427 LBP in 2023 to 39,639,633 LBP in 2024
- Private sector loans: slightly decreased from 308,316 LBP in 2023 to 263,790 LBP in 2024
- Total loans: jumped from 270,784,097 LBP in 2023 to 1,526,848,158 LBP in 2024
Public sector borrowing drove most of this increase, with debt payments reaching 73.27 billion LBP.
4. Deposits Multiply Nearly Sixfold
Total bank deposits rose 5.8 times year-over-year, reaching 7,101,122,536 million LBP, reflecting shifts in accounting for foreign currency deposits alongside evolving depositor behavior.
5. Policy Focus: Repayment of Dollar Deposits
The report outlines strategic plans to address outstanding foreign currency deposit liabilities through structured repayment mechanisms though specific timing remains unclear.
