Continuing Depreciation of the Euro with European Political Turmoil

Lebanese Forex Market:

Demand for the Dollar in the Lebanese Forex Market remained unchanged over the past week as the value of the dollar steadied at $/LP 1,513.75-1,514.25 with a mid-price of $/LP 1,514.

Foreign assets (excluding gold) of the Central Bank increased 2.20% since the beginning of the year to $36.28B by June 2016. The dollarization ratio of private sector deposits fell from 64.88% in December 2015 to 64.73% in May 2016.

By Friday 1st of July, 2016, 2:00 pm Beirut time, the euro depreciated against the dollar-pegged LP as the exchange rate decreased by 0.1%, over the last week, dropping from €/LP1675.74  to €/LP1674.08. As for the Nominal Effective Exchange Rate (NEER), it also decreased by a weekly 0.47% to 166.84 points.  

International Forex Market:

With the continuing consequences of the Brexit decision and the European political turmoil, the euro depreciated by 0.1% from last week value to €/$1.1105.

Commodities:

As for gold, its price increased from $1319.00 /ounce at last Friday to $1333.99 /ounce this week.

 

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