Demand for the dollar in the Lebanese Forex market strengthened during the week with the exchange rate moving within the peg range from $/LP 1,505–1,509 with a mid-price of $/LP 1,507 to $/LP 1,508–1,512 with a mid-price of $/LP 1,510. Foreign assets (excluding gold) at the Central Bank dropped by a monthly 0.57% to reach $38.59B at the end of August. As forthe dollarization rate of private sector deposits, it slid from 65.71% in December 2014 to 65.08% by June.
By Friday 4th of September, 2015, 11:30 pm Beirut time, the dollar-pegged LP appreciated against the euro going from €/LP 1,702.42 to €/LP 1,679.66. The Nominal effective exchange Rate (NEER) added a weekly 0.34% to 167.11 points, bringing its year-to-date gains to 13.43%.
International Forex Market:
The euro depreciated by 1.34% against the dollar to €/$ 1.1142. The Euro was mainly affected by the European Central Bank (ECB) cutting its economic forecasts and signaling it may expand stimulus.
Commodities:
The price of gold declined from last week’s $1,126.86/ounce to $1,123.86/ounce. Demand for the safe haven decreased for the second week in a row as the ECB implied that it might increase stimulus.