Lebanon weighs use of its large gold reserves amid economic strain

Lebanon holds about 286 tons of central-bank gold, and some banking officials have proposed using a portion to help repay depositors; any use would require parliamentary approval and faces legal and political obstacles.

Lebanon is evaluating whether to use part of its large central-bank gold stockpile as the country continues to experience prolonged economic strain. The central bank has held about 286 tons of gold since the 1960s, making it one of the region's largest reserves. Some banking officials have proposed using a portion of that gold to partly compensate depositors who lost savings after the banks' collapse. The proposal faces an existing legal ban and significant political resistance. Key facts: - The central bank reports roughly 286 tons of gold in reserve, a level maintained for decades. - A senior banking official said some banks have proposed tapping reserves to help repay depositors who lost funds in the currency and banking crisis. - Any sale or use of the reserves would require a parliamentary vote and could conflict with a decades-old ban; parliamentary leaders have signaled opposition. Summary: Using part of the gold reserves could provide funds to address banking losses and public-service shortfalls, but doing so would depart from past practice and raise legal questions. Parliament must approve any move, and the proposal faces political resistance ahead of upcoming elections.