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 June 29th, at the same range as last week.
The peg continues to be supported by the Central Bank’s solid foreign assets, which reached $45.3 billion in May 2018.
The dollarization ratio of private sector deposits grew from 65.84% in December 2017 to 68.32% in April 2018.
Over the past week, the Euro dropped against the dollar-pegged LP going from €/LBP 1,758.95 to €/LBP 1,756.09 to this week.
As for the Nominal Effective Exchange Rate (NEER) of the LBP, it recorded a 0.48% weekly uptick to reach 115.12 points.
International Forex Market
The euro dropped against the dollar by a weekly 0.16% to settle at 1.1649 on Friday June 29, 2018 as the European Central Bank maintains its low-interest rate stance. The slight drop in the euro could also be linked to some market jitters around the EU summit scheduled for the 28th and 29th of June where controversial topics such as Migration and Trump Policies were on the table.
Given the strength of the dollar, gold prices dropped further this week from $1,270/ ounce to $1,250.98/ ounce by the week ending June 29th.