Banque du Liban clarifies the evolution of its foreign currency assets between annual growth and a temporary decline

Banque du Liban said in a statement that, in light of recent discussion regarding the evolution of its foreign currency assets, it wishes to present the public with precise and documented facts and to provide an objective reading of how these assets developed during the period from April 2025 to April 2026.

In its statement, it said official data indicate that Banque du Liban’s foreign currency assets recorded a net increase of about $372 million during this period, rising from $11.06 billion to approximately $11.43 billion, despite temporary fluctuations seen in some months. It noted that foreign currency assets had increased by about $888 million from April 2020 through the end of January 2026.

Banque du Liban said: "A temporary decline was recorded in the months of February, March, and April 2026 amounting to $516 million, or about 4.5% of the value of foreign currency assets ($11.43 billion). This decline does not reflect any flaw in the monetary or financial policies in place, but rather resulted from exceptional geopolitical developments witnessed by the country and the region during that period, which led to a relative slowdown in the pace of the bank’s purchases of foreign currencies and its interventions in the markets.

At the same time, cash payments continued and even increased at the start of 2026 as a result of higher public sector payments and the raising of withdrawal ceilings under Circulars 158 and 166, which created temporary pressure on the level of assets."

It pointed out that these assets are also affected by purely valuation-related factors stemming from fluctuations in global exchange rates, particularly movements in the euro and the dollar, which are accounting factors that do not reflect actual cash flows.

The statement said: "Meanwhile, Banque du Liban, in cooperation with the government and the Ministry of Finance, continues to control the Lebanese pound money supply, which remains at the same previous levels, providing reassurance of long-term stability in the exchange rate."

Based on the above, Banque du Liban clearly and unequivocally affirmed that the fundamental factors capable of negatively affecting its foreign currency assets are geopolitical factors beyond the control of the state and Banque du Liban, including major security and regional tensions.

Banque du Liban said in its statement: "As for the monetary policies adopted by the central bank, as well as the state’s fiscal policies implemented by the Ministry of Finance, they have proven capable of maintaining a relative balance in the market and protecting assets despite scarce resources and exceptional circumstances. Accordingly, linking any temporary decline in these assets to internal decisions is contrary to the facts."

Banque du Liban affirmed that it will continue to manage these assets with the highest degree of prudence and responsibility, in a manner that ensures the protection of monetary stability and safeguards the interests of depositors and the national economy.