Euro Advances against Dollar on Account of Stronger Eurozone Economy

Lebanese Forex Market

Demand for the dollar remained stable on the Lebanese Forex market with the value of the Lebanese Pound trading within the range of $/LP 1,514 – 1,514. 5 with a mid-price of $/LP 1,514.25 since last week.

Foreign assets (excluding gold) at the Central Bank reached $39.76B in mid-April 2017 compared to $36.31B in the same period last year.

The dollarization ratio of private sector deposits rose from 64.7% in February 2016 to 65.9% in February 2017.

By Friday May 05th, 2017, the euro appreciated against the dollar-pegged LP going from €/LBP 1,646.58 on May 28th to €/LBP 1,652.07, this week.

As for the Nominal Effective Exchange Rate (NEER) of the LBP, it increased by 0.10% over the past week to stand at 115.68 points.

International Forex Market:

The euro gained more ground against the dollar this past week increasing by 2.23% to €/$ 1.0959.

 The euro’s strength came about on account of data pointing to a strong Eurozone economy. In contrast, US economic data for the first quarter was disappointing and uncertainty continues to loom around the implementation of Trump’s growth-boosting initiatives promised during his campaign.


Gold prices fell again this week from $1,266.44/ounce to $1,233.60/ounce this week, as markets breathed after surveys showed that Emmanuel Macron was the most convincing candidate during the last debate before Sunday’s French elections.

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