Lebanon This Week 547

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Lebanon This Week 547

August 04, 2018
Lebanon This Week 547

Gold Reserves in Arab Countries (in tons)*

*As of June 2018
Source: World Gold Council, Byblos Research

 

  • Lebanon has 18th highest level of gold reserves globally, second highest among Arab countries
    Figures released by the World Gold Council show that Lebanon held 286.8 tons in gold reserves at the end of June 2018. As such, Lebanon ranked in 18th place in terms of gold holdings among 96 countries, as well as the International Monetary Fund, the West African Economic Monetary Union, the European Central Bank and the Bank for International Settlements. It also ranked in seventh place among 66 non-OECD countries and in second place among 15 Arab countries included in the survey. Globally, Lebanon had more gold reserves than Spain (281.6 tons), Austria (280 tons) and Turkey (240.2 tons); while it held fewer reserves than Saudi Arabia (323.1 tons), Kazakhstan (321.8 tons) and the United Kingdom (310.3 tons). Also, Lebanon ranked ahead of the Philippines (196.4 tons) and behind Kazakhstan among non-OECD countries. The United States is the top holder of gold in the world with 8,133.5 tons, while Suriname came in last place with 1.1 tons in gold reserves.

    The value of Lebanon's gold reserves was $10.5bn at the end of June 2018, based on a price of $1,250.45 per troy ounce as published by the London Bullion Market Association. The value of Lebanon's gold holdings accounted for 22.3% of the Arab region's aggregate gold reserves, for 3.6% of the holdings of non-OECD countries and for 0.9% of global gold reserves at end-June 2018.

    Further, Lebanon's gold holdings were equivalent to 20.8% of the country's official assets in foreign currency plus gold reserves at the end of June 2018, which ranked Lebanon in 18th place globally, in seventh place among non-OECD countries and in first place among Arab countries. Globally, Lebanon's share of gold reserves out of its official foreign assets is higher than that of Finland (19.3%), Pakistan (18.2%) and Bolivia (17.7%); while it is smaller than that of Belarus (27.4%), Curacao & St. Maarten (26.8%) and the European Central Bank (26.2%). Also, Lebanon's share of gold holdings out of its official foreign assets is higher than that of Pakistan and lower than that of Curacao & St. Maarten among non-OECD countries. 
     

  • Remittance inflows to Lebanon down 7% to $7.1bn in 2017, equivalent to 13% of GDP
    Figures released by Banque du Liban show that the inflows of expatriates' remittances to Lebanon totaled $7.1bn in 2017, constituting a decrease of 7% from $7.6bn in 2016. The figures include workers’ remittances and the compensation of employees, according to the World Bank's definition of remittances. Remittance inflows to Lebanon in 2017 reached their seventh highest level during the 2002-17 period, compared to a high of $7.6bn in 2016 and a low of $2.54bn in 2002. Remittance inflows to the country averaged $6.3bn annually between 2002 and 2017, but they increased from an annual average of $4.8bn during the 2002-07 period to a yearly average of $7.21bn between 2008 and 2017. Banque du Liban's figures are the only official data on remittance flows to and from Lebanon.

    Also, the decrease in remittance inflows to Lebanon in 2017 constituted the steepest annual decline since 2010, when they regressed by 8.8%. In this context, remittance inflows decreased five times year-on-year and expanded three times in the 2010-17 period. Remittance inflows to Lebanon expanded at a compound annual growth rate (CAGR) of 7.1% during the 2002-17 period, as they posted a CAGR of 17.8% between 2002 and 2007 and a CAGR of -0.2% during the 2008-17 period. 

    Further, remittance inflows to Lebanon were equivalent to 13.1% of GDP in 2017 compared to 14.8% of GDP in 2016, 17.9% of GDP in 2010 and 23.2% of GDP in 2007. Aggregate remittance inflows to Lebanon were equivalent to 17.8% of GDP between 2002 and 2017, as they were equivalent to 22.4% of GDP during the 2002-07 period and to 16.5% of GDP between 2008 and 2017.

    In parallel, remittance outflows from Lebanon amounted to $4.45bn in 2017, up by 6.8% from $4.17bn in 2016, their fourth highest level during the 2002-17 period. They averaged $3.5bn annually during the 2002-07 period and $4.5bn yearly between 2008 and 2017, with a low of $2.5bn in 2002 and a high of $5.75bn in 2009. Further, remittance outflows from Lebanon were equivalent to 8.2% of GDP in 2017, their second lowest level on record. Aggregate remittance outflows from Lebanon were equivalent to 11.7% of GDP between 2002 and 2017, as they were equivalent to 16.6% of GDP during the 2002-07 period and to 10.3% of GDP between 2008 and 2017. 

    As such, net remittance inflows to Lebanon reached $2.6bn in 2017, constituting a decrease of 23.6% from $3.4bn in 2016, but representing their sixth highest level on record. They were equivalent to 4.8% of GDP in 2017, the fifth lowest level during the 2002-17 period.
     

  • Stock market index down 16% in first seven months of 2018
    Figures released by the Beirut Stock Exchange (BSE) indicate that trading volume reached 60,683,990 shares in the first seven months of 2018, constituting an increase of 28.8% from 47,103,683 shares traded in the same period of 2017; while aggregate turnover amounted to $448.6m, up by 10.6% from a turnover of $405.5m in the first seven months of 2017. Market capitalization regressed by 9.1% from the end of July 2017 to $10.3bn, with banking stocks accounting for 84.7% of the total, followed by real estate equities (11.6%), industrial shares (3.1%) and trading firms' equities (0.3%). The market liquidity ratio was 4.3% in the covered period compared to 3.6% in the first seven months of 2017.

    Banking stocks accounted for 82.2% of the aggregate trading volume in the first seven months of 2018, followed by real estate equities with 15.2%, industrial shares with 2.2% and trading stocks with 0.4%. Also, banking stocks represented 78.1% of the aggregate value of shares traded, followed by real estate equities with 17.6%, industrial stocks with 4.1% and trading stocks with 0.2%. The average daily traded volume for the period was 433,457 shares for an average daily value of $3.2m. The figures reflect a rise of 29.8% in volume and an increase of 11.4% in value year-on-year in the first seven months of the year. In parallel, the Capital Markets Authority's Market Value-Weighted Index for stocks traded on the BSE dropped by 15.6% in the first seven months of 2018, while the CMA's Banks Market Value-Weighted Index regressed by 15.1% in the covered period.
     

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