Where did Leb get its $ from?It's been analyzed to death. A story in 3 chapters 👇. Leb's growing $ needs were funded using inflow of $ deposits from the diaspora. For a time, 80-100% of $ needs were funded using such inflows. Excess $ flowed into the country & BDL reserves grew 
In 2015, deposit inflows became insufficient to fund Lebanon's growing $ needs. BDL used its reserves to fill the gap and did FE to slow the decline in $ deposit growth. Local Banks & Govt also increased unsustainable borrowing of $ from abroad to fill the gap (red line).
By '18, BDL was not able to stop the decline in deposit growth. Banks & Govt were also not able borrow USD from abroad. So, BDL made large drawdowns of its reserves to fund Leb's $ needs.That's as of June.Things got worse and capital controls were implemented to stop $ hemorrhage
Whether BDL reserves are growing or shrinking, these $ belong to depositors. That's what makes Leb's case so unique. See 👇. Leb's $ reserves (used to import goods&services) will eventually run out unless we start importing less/exporting more.
