The rising value of Lebanon's gold reserves have reignited debate over whether the precious asset could help ease the country's deep financial crisis. However, the central bank remains steadfast in its refusal to liquidate or invest the reserves, citing strict legal barriers and the risk of further mismanagement.

A senior financial official, speaking to Asharq Al-Awsat, acknowledged the significance of the discussions, especially as the central bank's latest estimates place Lebanon's gold holdings at around $28 billion. He stressed, however, that any potential policy shift would first require a comprehensive audit to verify the reserves' precise value, weight, and historical origins.

Lebanon officially holds approximately 286.8 tons of gold, or 9.25 million ounces, accumulated under the 1963 Monetary and Credit Law to back the Lebanese lira. Roughly two-thirds of the gold is securely stored at the central bank in Beirut, while the remaining third is held at Fort Knox in the United States.

Despite the mounting interest in tapping into the reserves, Lebanese law strictly prohibits any direct or indirect transaction involving the gold. Law No. 42 of 1986 mandates that any sale, leasing, or investment of the reserves must receive explicit approval from Parliament. Acting Central Bank Governor Wassim Mansouri has repeatedly reaffirmed this restriction. “No matter what happens, I will not sign off on moving even a gram of gold,” Mansouri stated firmly.

He also warned against repeating past mistakes. Before Lebanon’s financial collapse in late 2019, the central bank held around $33 billion in foreign currency reserves, while its gold reserves were valued at $16 billion. Much of the cash reserves were depleted through unsustainable subsidy programs, leaving only $8.5 billion today.

"We lost one and a half times the value of our gold, and it didn't solve anything. The idea of using gold is simply not an option," Mansouri said.

While some policymakers argue that investing the gold could generate much-needed revenue, financial experts caution that without proper governance, such a move could lead to further mismanagement. They stress that the focus should instead be on comprehensive economic and institutional reforms.

A top priority remains securing an agreement with the International Monetary Fund (IMF) to instill financial discipline, transparency, and oversight. Any decision regarding the gold reserves would require parliamentary approval and a carefully structured plan. Experts also highlight that Lebanon already possesses substantial state-owned assets that, if managed effectively, could help bridge the country’s estimated $72 billion financial gap.

These assets include vast coastal and riverfront properties, 850 million square meters of state-owned land, high-value real estate in Beirut and other cities, as well as key infrastructure like electricity, water, telecommunications, ports, and transport networks. Many of these resources remain underutilized due to corruption and inefficiency.