No to selling the gold:
Central Bank wants reform first

Offers received to make use of

the existing bullion without losing ownership

In farewell interviews to An Nahar and Nidaa Al Watan daily newspapers, acting Central Bank Governor Wassim Manssouri provided insights into the state of the financial sector and the Central Bank’s reforms, emphasizing fiscal discipline, transparency, and resistance to political interference.

Deposits Valued at Real Exchange Rate
He clarified recent remarks on deposit valuations, explaining that all bank assets, including depositor funds, are now recorded at the real market exchange rate of 89,500 Lebanese pounds per U.S. dollar. While actual withdrawals are still processed at the outdated rate of 15,000 pounds, he stressed that any recovery plan must reflect the true rate to ensure fairness. Valuing deposits at the lower rate, he said, amounts to an implicit haircut.

$3.6 Billion Paid Back to Depositors
He said that over 45,000 bank accounts have been fully paid off, totaling $3.6 billion. Manssouri wants a comprehensive plan is still needed to return funds to the rest of the depositors, and the Central Bank is ready to cooperate with the government by providing accurate data to inform a fair strategy.

Capital Controls Needed Before Full Dollar Access
The Governor rejected unregulated access to deposits at the real rate without a capital control law. He opposes converting dollar deposits into lira (liralization) without clear regulation, warning it would undermine trust.

Bloomberg Platform Delayed Due to Security Instability
Although technical preparations for the Bloomberg FX trading platform are complete in coordination with the IMF, its December 2023 launch was postponed due to the Gaza conflict and war on Lebanon, and its resulting instability. Manssouri reiterated that exchange rate stability—not a fixed peg—is the Central Bank’s strategy moving forward.

Foreign Reserves Rise, but Gold Off-Limits
Foreign currency reserves have grown to $10.75 billion, up from $8.5 billion when he took office. However, he rejected suggestions to tap into gold reserves, citing the need for legal changes and fiscal reforms first. He disclosed that international banks, especially in the U.S., have offered investment opportunities of the existing gold that preserve ownership—though any move would require parliamentary approval. He also said that BDL owns rare gold coins and bullions that would make their value much higher than its market price, and that BDL is about to undertake a new inventory and valuation.

No Political Interference in Key Appointments
Addressing criticism over recent staff changes, Manssouri said the appointments were based solely on merit and aligned with IMF recommendations. He dismissed claims of favoritism, asserting that none of the appointees were politically affiliated.

Stability Built on Institutional Decisions
The Governor highlighted that monetary decisions are now institutionalized, made jointly with the Prime Minister and Finance Minister, and approved by the Central Bank’s board. This reduces reliance on individual leadership and helps ensure policy continuity.

Stance on U.S. Compliance and Financial Regulations
Manssouri affirmed strict adherence to global financial laws, including U.S. sanctions and FATF regulations. Entities or individuals under suspicion or sanctions are barred from the financial system, helping Lebanon maintain its position outside the FATF grey list.

Call for Structural Reforms and IMF Agreement
He underscored the need for structural reforms and an agreement with the IMF, calling it essential—not optional—for Lebanon’s recovery. He warned against repeating past mistakes of using reserves without reform, and urged lawmakers to finalize the appointment of a permanent governor ahead of the April deadline agreed upon with the IMF.