Lebanese Forex Market:
Demand for the Dollar in the Lebanese Forex Market remained unchanged over the past week as the value of the dollar steadied at $/LP 1,513.75-1,514.25 with a mid-price of $/LP 1,514.
Foreign assets (excluding gold) of the Central Bank increased 0.59% since the beginning of the year to $37.31B by May 2016. The dollarization ratio of private sector deposits fell from 64.88% in December 2015 to 64.81% in March 2016.
By Friday 03rd of June, 2016, 3:00 pm Beirut time, the euro depreciated against the dollar-pegged LP as the exchange rate lost 0.29%, over the last week, decreasing from €/LP 1,685.54 to €/LP 1,680.71. As for the Nominal Effective Exchange Rate (NEER), it added a weekly 0.08% to 167.14 points, registering a 0.74% year-to-date decrease.
International Forex Market:
The euro lost momentum against the dollar as the exchange rate went down from last week’s €/$ 1.1181 to €/$ 1.1149 this week. The dollar witnessed a positive performance by the end of this week mainly impacted by positive forecasts for the U.S non-farm payrolls expected to be released on Friday. However, data released in the afternoon revealed a reading below expectations of only 38,000 jobs added. Also, the ECB and OPEC meetings this week failed to boost the European currency since no major policy changes were adopted.
The gold prices edged higher from $1,217.37/ounce last week to $1,236.52/ounce at 4:00 Beirut time this Friday.