Lebanese Forex Market:
Demand for the Dollar in the Lebanese Forex Market improved over the past week as the value of the dollar increased from $/LP 1,513-1,514 with a mid-price of $/LP 1,513.5 to $/LP 1,513.75-1,514.25 with a mid-price of $/LP 1,514.
Foreign assets (excluding gold) of the Central Bank fell by a monthly 0.20% to $37.02B at the end of January 2016. The dollarization ratio of private sector deposits fell from 65.71% in 2014 to 64.88% in 2015.
By Friday 26th of February, 2016, 12:30 am Beirut time, the euro depreciated against the dollar-pegged LP as the exchange rate dropped by 0.73%, over the last week, from €/LP 1,672.87 to €/LP 1,660.66. As for the Nominal effective Exchange Rate (NEER), it appreciated by a weekly 0.11% to 168.52 points, with a 0.08% year-to-date increase.
International Forex Market:
The Euro dropped by a weekly 0.73% against the dollar due to the risk of potential exit of the UK from the European Union. Moreover, a higher than expected rate of GDP growth in the US also caused the dollar to move higher.
Mounting concerns over a global slowdown increased demand for the safe haven, leading the price of gold to go up from last week’s $1,227.36/ounce to $1,229.51/ounce this week.