Close Menu
    Facebook X (Twitter) Instagram
    Sunday, May 18, 2025
    961
    Instagram Facebook LinkedIn TikTok
    • Breaking News
    • Guides
    • Food & Drink
    • Listicles
    • Join the Team
    • Whatsapp
      • 961
      • 961 News
    • AUB Outdoors ☀️
    Advertise with Us Get the App
    961
    Home»News»Lebanon News
    Study: Lebanon's Central Bank Doesn't Have Enough Reserves To Print More Cash
    Bloomberg/Hasan Shaaban
    2 Mins Read

    Study: Lebanon’s Central Bank Doesn’t Have Enough Reserves To Print More Cash

    By Hussein YassineApril 2, 2021
    Facebook WhatsApp Copy Link

    The Lebanese Central Bank has exceeded the money creation limit set by the law, a study by the Beirut-based firm, Information International, has revealed.

    The study indicated that according to Article 69 of the Code of Money and Credit, the central bank “must keep in its assets funds of gold and foreign currencies that safeguard the coverage of cash, equivalent to at least 30% of the value of the cash it issued and the value of its demand deposits, provided that the value of the gold and the currencies mentioned is no less than 50% of the value of the issued cash.”

    Between the end of 2011 and the end of 2020, the value of the issued cash in Lebanon rose from 3,284 billion LBP to 29,450 billion LBP, an increase of 26,116 billion LBP (796%).

    According to the study, the largest increase took place between September 2019 and the end of 2020, reaching 1,656 billion LBP per month on average.

    Currently, demand deposits are at 45,834 billion LBP, which puts demand deposits and issued cash together at a total of 75,284 billion LBP.

    The study points out that the central bank does not have a special reserve of foreign currency, except for the $16 billion in bank deposits.

    As such, the only remaining coverage for cash is in gold reserves, whose value is currently about 24,000 billion LBP, or 32% of demand deposits and issued cash.

    Therefore, the study concludes, “the Central Bank of Lebanon has exceeded the specific ceiling (at least 30%) and hence cannot continue issuing cash.”

    It notes that creating more money would be possible if the central bank considers bank deposits as reserves to be added to gold.

    Lebanon
    Share. Facebook Twitter LinkedIn WhatsApp Reddit Email

    For You

    uae travel ban lebanon 961

    UAE Is Officially Removing The Travel Ban On Lebanon

    Lebanese talking-stage

    15 Things Your Lebanese Talking-Stage Will Tell You, And What It Actually Means

    Joe Issa El-Khoury 961

    Who is Joe Issa El-Khoury, Lebanon’s New Minister of Industry

    Adel Nassar 961

    Who is Adel Nassar, Lebanon’s New Minister of Justice

    Nizar Hani 961

    Who is Nizar Hani, Lebanon’s New Minister of Agriculture

    Charles Hajj 961

    Who Is Charles Hajj, Lebanon’s New Minister of Telecommunications

    20 Celebrities You Probably Didn’t Know Had Lebanese Roots

    Ampere Cinema Reopens Its Doors In North Lebanon After 28 Years Of Absence

    June 30, 2022
    saint levant aub outdoors 2025 961

    Saint Levant Is Officially Headlining AUB Outdoors 2025!

    May 7, 2025

    Lebanon’s Shawarma Is Going Viral in The Philippines

    April 21, 2019

    20 Typical Lebanese Slang Expressions

    April 21, 2020
    dew apparel nada koussa miss lebanon 961

    Miss Lebanon Nada Koussa Just Launched A Sportswear Brand

    May 3, 2025
    Lebanese boutiques

    25 Boutiques In Lebanon To Find Your Dream Evening Dress This Wedding Season

    June 9, 2024
    nada koussa miss world miss lebanon 961

    Nada Koussa Just Left To Represent Lebanon At Miss World

    May 7, 2025
    arabic words

    30 Beautiful Arabic Words You Probably Want To Learn

    April 22, 2020
    Fattoush

    Lebanon’s Fattoush Ranked One of the Best Salads in the World (Again!)

    April 16, 2025
    961 Logo
    Facebook WhatsApp TikTok Instagram

    Popular Topics

    • Guides
    • Eat & Drink
    • Listicles
    • Lebanon News
    • Diaspora
    • Explained

    961

    • About
    • WhatsApp Channel
    • News WhatsApp Channel
    • Corrections Policy
    • Ownership & Funding

    Services

    • Advertise
    • Careers
    • App Waitlist
    • Contact Us
    • Newsletter
    961™ | All Rights Reserved ©2025
    • Privacy Policy
    • Terms

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Okay