Lebanon to keep gold reserves at $17b

Lebanon will keep its gold reserves at around $17 billion (Dh62.5 billion) as it tries to shield its economy from unrest in neighbouring Syria by maintaining interest rates at current levels and adopting a prudent fiscal approach, the country's central bank governor said. Speaking on the sidelines of an Arab central bank governors meeting in Doha, Riad Salameh also said Lebanon had no plans to revalue its currency against the US dollar. With the greenback under renewed pressure since Standard and Poor's historic debt downgrade of the world's largest economy early last month, speculation has grown over whether some Gulf states might revalue their currency. "Lebanon is immune to what is happening in Syria or worldwide because of the model we have, which is highly liquid, prudent approaches to credit and low leverage," Salameh said, adding that there was demand for the Lebanese pound and cash inflows were improving. Salameh said that high oil prices should help protect the Middle East from a worsening global economy.