Its value rose to 30 billion dollars .. Is it time to invest Lebanon’s gold?

Gold recently recorded the highest level ever, as it exceeded the first time on Monday 3100 dollars an ounce with the emergence of a new wave of investments in the assets of safe haven due to concerns about American customs duties and potential economic slowdown, in addition to geopolitical concerns.

With the great rise in gold prices in the recent period, talking about Lebanon’s gold returned after its value has increased to the limits of 30 billion dollars, and talking about the possibility of investing in resolving the economic crisis that the country suffers from, especially in terms of being considered one of the solutions to return the money of depositors, so can this step be taken and what are the mechanisms that must be adopted?

Lebanon has 287 tons
In the latest report of the World Gold Council, it was found that Lebanon ranked second in the Arab world after Saudi Arabia in the classification of the countries that keep gold in the world, and it owns about 287 tons, followed by Algeria by about 174 tons, Iraq 163 tons, then Libya with about 147 tons, and Egypt by about 127 tons, and Qatar with about 111 tons.

Lebanon maintains a third of the gold reserves at the Fort Nox Castle in the United States, while it remained on two -thirds in the treasures of the Central Bank in Beirut, and there are about 6.6 million ounces of gold reserved in the Bank of Lebanon are alloys with different weights, ounces and gold coins.

Note that gold in Lebanon is protected by a law of enactment in the mid -eighties of the last century during the era of President Amin Gemayel to prevent its disposal, and therefore this can only be possible according to the issuance of a new law.

The gold “shark” is white?
The researcher in economics and banking risk expert, Dr. Mohamed Fahili, indicates that “the Bank of Lebanon had a surplus of foreign currency reserves during the era of the late President Elias Sarkis, so the decision was taken to invest part of this surplus through the purchase of gold,” explaining that “this gold is one of the assets of the Bank of Lebanon and the decision is due to how to act and employ this liquidity in order to create economic stability and economic growth.”

Fahili added in an interview withLebanon 24: “The political authority interfered at a later stage, specifically during the war years in this matter, because the state is responsible for the Bank of Lebanon and it did not seize gold, but rather made a political decision to prevent the disposal of it except through a law issued by the parliament, and this matter is very important because how to act in gold requires a consensus between the monetary and legislative authorities to take any decision on it.”

Fahili said: “It is certain that the previously employment was intended to keep“ white Lebanon’s penny for its black day ”and I believe today, Lebanon lives in black days, and this is the time to invest the“ white shark ”to save the country, but within clear conditions.

He pointed out that “first part of the gold must be invested to activate the economic wheel in Lebanon and the events of recovery and economic growth in a way that benefits all Lebanese, including individuals and institutions, i.e. banking institutions and depositors, and in this case the deposited who lost his deposit and his job if he chooses to find a job within an economy in the growth phase or a response of his deposit I believe that he will choose the job because it provides him with health guarantees and end -of -service compensation and others.”

He continued: “There is no objection to liquefying part of this gold, but within a clear -cut economic plan that is attached to a law and within a mechanism of how to use this section that was liquidated within conditions, and a part of the gold that was used within a limited period of time must be reinstated in harmony and commensurate with the economic plan and the amount of gold that was liquidated.”

Fahili considered that “the title of gold liquefy in order to pay the money of the depositors” is permanently rejected because this reduces the size and nature of the state’s obligations towards its debts and reduces the necessity of accountability and accountability of bankers who have offended the employment of the depositors’ money and the matter becomes as a general amnesty against the wrong perpetrators that led to the economic crisis that we live in, “adding:” For this reason, gold must be for all The Lebanese are part of the mechanism that I talked about. ”

He pointed out that “today the price of gold has reached high levels, which is therefore the appropriate time to liquefy a part of it because the waiting may not necessarily be in the interest of Lebanon, noting that the method of liquefaction of gold will not be easy because Lebanon has part of it in America and the other section is present in Lebanon and if we want to directly the sale, there will be a process of shipping, enacting laws and agreements and setting an economic plan.”

In conclusion, he said: “Today, if the Lebanese state wants to walk towards the liquefaction of a part of gold, as he suggested to activate the economic wheel and recover Lebanon and reach economic growth, this matter requires at least 6 months within a clear economic plan. The golden opportunity available to us is lost at gold prices, which reached $ 3,000 and to return and drop to low levels. ”

Gold reserve story
Lebanon began owning gold reserves after its independence from the French Mandate, as since 1948 he began acquiring the first amount of gold after joining the International Monetary Fund in 1946 after recognizing the Lebanese lira as an independent currency.

The successive governments between the independence period and the early seventies continued to buy gold to feed the Banque du Liban, from the surplus budget and the taxes they take from citizens.

At that time, the purchase of gold was associated with stabilizing the dollar exchange rate and preserving its value, and continued until the early 1970s after the United States dismantled the dollar coverage and its printing in gold, which is a decision known as “Nixon shock” (relative to former US President Richard Nixon), who imposed the dollar as a reserve alternative to gold to preserve the value of all other currencies around the world, and since 1971 Lebanon has stopped buying gold after the American decision to reach The value of his savings is 286.8 tons. On that day, a decision was issued by the Central Bank, which ruled that a moving exchange rate of the lira was approved, and it remained valid until 1999, when the exchange rate of the dollar was established at 1507.5.

In 1986, Law No. 42 was issued, according to which gold is prohibited from the Bank of Lebanon or its account, whatever the nature of this behavior, with the aim of protecting gold and preventing the hand on it.