Lebanese Forex Market
Demand for the dollar on the Lebanese forex market stabilized over the past week as the value of the Lebanese pound against the dollar steadied at $/LP 1,514-1,514.50 with a mid-price of $/LP 1,514.25.
Foreign assets (excluding gold) of the Central Bank increased 9.81% since the beginning of the year to $40.73B by August 2016. The dollarization ratio of private sector deposits fell from 64.88% in December 2015 to 64.84% in June 2016.
By Friday the 9th of September 2016, the euro appreciated against the dollar-pegged LP over the last week, going from €/LBP 1,685.69 to €/LBP 1,698.95. As for the Nominal Effective Exchange Rate (NEER) of the LBP, it fell by 0.31% to reach 166.58 points.
International Forex Market:
The euro grew stronger against the dollar with the euro/dollar exchange rate rising from €/$1.1182 to €/$1.1270, this week. The euro’s strength came about as Mario Draghi, the head of the European Central Bank, appears likely to keep the monetary policy unchanged for now.
Over the week, demand for gold rose slightly from $1,311.96/ounce to $1,334.9/ounce this week.