Lebanon Evaluates Its Gold in the Middle East Economic Map

In the complex economic landscape of the Middle East, Lebanon faces a critical decision that could transform its national reserves strategy. According to BlockBeats, the Lebanese government is seriously considering selling or leasing part of its substantial gold holdings as a mechanism to revive its severely deteriorated economy. This proposal has attracted international attention due to the regional macroeconomic context and the country’s role on the Middle Eastern geopolitical map.

Lebanon’s Gold Wealth in a Regional Context

Lebanon’s central bank manages over 280 tons of gold, making it the second-largest holder of precious reserves in the Middle East, surpassed only by Saudi Arabia. This significant volume has seen its market value increase considerably thanks to the sustained rise in international gold prices. The strategic importance of these reserves lies not only in their figures but also in how they represent a vital asset within the regional financial stability landscape.

Generations of Accumulation: The Origin of the Gold Reserves

Lebanon’s gold stock is not the result of recent decisions but stems from a long-term strategy dating back to the 1940s and 1950s. During those crucial periods, the country implemented a deliberate gold accumulation policy with a clear goal: to support and strengthen the value of its national currency, the Lebanese pound. This long-term vision reflects Lebanon’s efforts to establish itself as a solid financial hub within the Middle East.

The Collapse That Changed Everything

Since 2019, Lebanon has experienced an unprecedented economic collapse that has undermined all fundamentals of its financial system. Despite numerous attempts to reach consensus solutions, various political factions and economic actors have remained deadlocked, unable to reach substantial agreements. This desperate situation has led authorities to consider options that would have been unimaginable until recently, such as disposing of their most precious assets.

The Proposal Sparks Massive Resistance

The idea of selling or leasing gold reserves has triggered a wave of public rejection across the country. Lebanese citizens perceive this measure as a temporary solution that favors the interests of an economic elite at the expense of the majority’s well-being. The opposition reflects deep distrust in institutions and a conviction that more equitable alternatives exist to resolve the economic crisis affecting the Middle East in general and Lebanon in particular.