Lebanese Forex Market
The Lebanese Pound traded within the range of $/LP 1,513.75 -1,514.25 against the dollar with a mid-price of $/LP 1,514, as it did last week.
The peg continues to be supported by the Central Bank’s solid foreign assets, which reached $43.4 billion in February 2018.
The dollarization ratio of private sector deposits grew from 65.84% in January 2017 to 68.44% in January 2018.
Over the past week, the Euro appreciated against the dollar-pegged LP going from €/LBP 1,855.73 last week to €/LBP 1,860.77 this week.
As for the Nominal Effective Exchange Rate (NEER) of the LBP, it rose from 108.89 points last week to 109.09 points this week.
International Forex Market
The euro slightly appreciated over the US dollar this week, with the Euro-dollar exchange rate recording a marginal 0.27% uptick, to end the week at €/$ 1.2343. In fact, the dollar slipped as it was primarily affected by fears of an imminent trade war after the US administration announced the decision to impose tariffs on steel and aluminum, thereby threatening trade relations particularly with China and Europe.
As for the prices for gold, they fell from last week’s $1,328.87/ounce to $1,322.96/ounce this week.