Weaker Dollar amid Rising Concerns over Trump

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 $39.26B in April 2017 compared to $40.71B in December 2016.

The dollarization ratio of private sector deposits rose from 65.82% in December 2016 to 66.13% by the end of March 2017.

By Friday May 19, the euro appreciated against the dollar-pegged LP going from €/LBP 1,643.17 on May 12th to €/LBP 1,680.86, this week.

As for the Nominal Effective Exchange Rate (NEER) of the LBP, it dropped by 1.05% over the past week to stand at 114.73 points.

International Forex Market:

The dollar depreciated against the euro this past week falling by 2.29% to €/$ 1.1150. Pressure on the Dollar increased after news that Trump interfered with a federal investigation, in which he asked his now-dismissed FBI Director James Comey to end the agency’s investigation into ties between former White House national security adviser Michael Flynn and Russia.


Gold prices rose this week from $1,230.80/ounce to $1,272.30/ounce.

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