Banque du Liban's foreign reserve assets decreased from approximately $12.07 billion in mid-February to approximately $11.43 billion by the end of April 2026. The central bank restricted Lebanese-pound liquidity during this period to maintain exchange-rate stability, according to central bank records. The move aligns with efforts to manage the country's foreign assets.
Central bank records show that reserves declined to $11.88 billion by the end of February. Official figures indicate a further decrease to $11.66 billion by mid-March, before reaching $11.43 billion by the end of April. The Lebanese pound exchange rate has remained near 89,500 to the U.S. dollar throughout the period. This stability was a key objective of the central bank's recent actions.
Prior to a 2019 financial collapse, Lebanon maintained an official currency peg of 1,507.5 pounds to the dollar. The parallel-market exchange rate of approximately 89,500 pounds to the dollar now influences taxes, customs duties, public and private salaries, corporate accounting, and cash transactions. The Lebanese government implemented emergency fiscal discipline measures. Bank Audi's economic report stated that liquidity restrictions maintained currency stability during the first quarter of 2026. The report noted the role of monetary policy in the current environment.
Lebanon's 2025 budget law allocated approximately $5 billion in revenues and expenditures. Official Finance Ministry documents indicate the 2026 state budget was structured around revenues and expenditures of approximately $6 billion. The banking sector deficit was estimated at over $70 billion in 2022, according to international agency reports. The deficit remains a challenge for the financial sector.
A World Bank interim assessment reported that fighting in 2024 caused $3.4 billion in physical damage to Lebanon. The World Bank reported that fighting in 2024 caused $5.1 billion in direct economic losses. The bank estimated Lebanon's total recovery and reconstruction needs at $11 billion. The reserve reduction occurs as the country faces these estimated recovery and reconstruction needs. These needs are part of the broader economic impact assessed by the institution.