Mario Draghi’s Comments Weaken the Euro

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 depreciated against the dollar-pegged LP going from €/LBP 1,860.77 last week to €/LBP 1857.45 this week.

As for the Nominal Effective Exchange Rate (NEER) of the LBP, it fell from 109.09 points last week to 109.04 points this week.

International Forex Market

The euro slightly depreciated over the US dollar this week, with the Euro-dollar exchange rate recording a marginal 0.18% fall, to end the week at €/$ 1.2321. In fact, the euro weakened this week on the back of cautious comments from ECB President Mario Draghi on inflation, stating that measures of underlying inflation remain subdued.


As for the prices for gold, they fell from last week’s $1,322.96/ounce to $1,320.17/ounce this week.


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