Lebanon Considers Selling Gold Reserve to Save Banks and Economy

BlockBeats News, February 23rd. According to the Financial Times, Lebanese bankers and politicians are considering selling or leasing part of the central bank's substantial gold reserves as a way to rescue the country's economy. The value of these gold reserves has soared as the price of gold has risen.

The Lebanese central bank holds over 280 tons of gold, second only to Saudi Arabia in the Middle East, which is rare for a small country. The bank started accumulating gold reserves in the 1940s and 50s to support the value of the Lebanese currency. Since 2019, Lebanon has been plagued by an economic collapse, but all parties have been unable to agree on a solution.

However, the sale of the country's accumulated gold reserves has been strongly opposed by the public, who see it as a stopgap measure where the few benefit at the expense of the many.