BEIRUT,  (Xinhua) — Lebanese central bank’s foreign exchange reserves increased by 1.4 billion U.S. dollars during the second half of August to reach 38.66 billion dollars at the end of the month. “This increase is due to the influx of deposits from the non-resident private sector directly to the central bank,” a statement by the central bank’s governor said on Friday. The statement said that this increase ensures the solvency of Lebanon and strengthens the stability of the Lebanese pound while reducing the balance of payments deficits. The governor’s remarks came a day after the U.S. Treasury Department imposed sanctions on Lebanese Jammal Trust Bank. The U.S. Treasury on Thursday sanctioned Lebanese Jammal Trust Bank for “brazenly enabling” Hezbollah’s financial activities. The bank issued a statement on Friday denying the U.S. Treasury Department’s accusations. “The bank is strictly committed to rules and regulations of Lebanon’s central bank and international rules on countering money laundering and financing of terrorism,” the statement said.