Lebanese Forex Market
The Lebanese Pound traded within the range of $/LP 1,514-1,514.5 against the dollar with a mid-price of $/LP 1,514.25 by the week ending April 27th, at the same range as last week.
The peg continues to be supported by the Central Bank’s solid foreign assets, which reached $43.4 billion in March 2018.
The dollarization ratio of private sector deposits grew from 65.84% in December 2017 to 68.44% in January 2018.
Over the past week, the Euro depreciated against the dollar-pegged LP going from €/LBP 1,852.05 to €/LBP 1,819.70 this week.
As for the Nominal Effective Exchange Rate (NEER) of the LBP, it climbed by a weekly 1.01% from 109.98 points last week to 111.09 points this week.
International Forex Market
The euro depreciated more pronouncedly against the dollar this week, as reflected in the 1.75% downtick in the euro-dollar rate, which slipped from €/$ 1.23 last week to €/$ 1.21 this week. The Euro was hampered Draghi’s dovish European Central Bank (ECB) statement on Thursday 26th which signals the pursuing of a lax monetary policy.
Gold prices fell over the past week from $1,342.21/ounce to $1,319.27/ounce this week.