Lebanon’s Gold Standoff: Crisis Lifeline or a Dangerous Last Resort?

A Crisis Without a Clear Exit

Lebanon’s economic meltdown—described by the World Bank as one of the worst globally since the mid‑19th century—has wiped out savings, crippled public services, and pushed more than 80% of the population into poverty. The Lebanese pound has lost over 98% of its value, and the banking sector remains paralysed.

Against this backdrop, the gold reserves held by Banque du Liban (BDL) represent one of the few remaining pillars of financial credibility.

Economist Rami Khoury says the debate is no longer theoretical.
“Lebanon is running out of options. The gold is the last major asset left untouched. The question is whether selling it would stabilise the economy or simply delay the inevitable,” he told reporters.

A Legal Fortress Around the Reserves

Lebanon’s gold—estimated at 286.8 tonnes, one of the largest holdings in the Middle East—is protected by a 1986 law that prohibits its sale or transfer without explicit parliamentary approval. The legislation was enacted during the Civil War to prevent political factions from liquidating national assets.

Any attempt to sell gold today would require a broad political consensus—something Lebanon has struggled to achieve on even basic governance issues.

Parliament Speaker Nabih Berri recently reiterated that “the gold is not up for negotiation”, reflecting the entrenched resistance among many political blocs.

Supporters of a Sale: ‘A Controlled Strategy, Not a Fire Sale’

A minority of economists and political figures argue that a partial, carefully managed sale could help stabilise the currency, rebuild foreign reserves, or fund essential imports such as fuel, medicine, and wheat.

They insist that the gold should not be viewed as untouchable while the country faces humanitarian and economic collapse.

“If used responsibly, a portion of the gold could support a recovery plan and restore confidence,” said financial analyst Leila Mansour. “The danger lies not in selling, but in selling without a strategy.”

Opponents Warn of Irreversible Damage

Critics argue that selling gold would be a catastrophic mistake, stripping Lebanon of its last financial safeguard and leaving future generations with nothing to rebuild upon.

They warn that without structural reforms—such as banking sector restructuring, anti‑corruption measures, and fiscal discipline—any proceeds from a gold sale would be quickly depleted.

“Gold is the final insurance policy. Once it’s gone, it’s gone forever,” said former central bank official Elias Haddad. “Selling it now, without a credible reform plan, would be reckless.”

International Institutions Remain Cautious

The International Monetary Fund (IMF), which has been negotiating a stalled rescue package with Lebanon, has not explicitly called for gold sales. Instead, it has emphasised governance reforms, transparency, and restructuring of the financial system.

Diplomatic sources say the IMF views gold as a buffer, not a solution.

Public Opinion: Distrust and Fear

Many Lebanese citizens, already devastated by years of mismanagement and corruption, fear that any gold sale would be misused by political elites.

“They took our savings. Now they want to take the gold too,” said Beirut resident Hanan Fawzi, reflecting widespread public sentiment.

A Decision That Could Define a Generation

As Lebanon’s crisis deepens, the gold dilemma has become a symbol of the country’s broader struggle: whether to protect what remains or risk it in hopes of a turnaround.

For now, the reserves remain untouched. But with state revenues collapsing, foreign reserves depleted, and political paralysis ongoing, the debate is expected to intensify in the months ahead.

Whether Lebanon’s gold becomes a lifeline or remains a last resort may ultimately determine the trajectory of the nation’s recovery—or its further decline.