Demand for the dollar steadied over the prior week as reflected by the Lebanese pound’s peg against the dollar that remained at $/LP 1,510-1,514 with a mid-price of $/LP 1,512, since last week. Foreign assets (excluding gold) at the Central Bank rose by a monthly 0.97% from $38.05B by August to $38.42B by end-September. Meanwhile, the dollarization rate of private sector deposits stood at 65.89% in August compared to 66.13% in December 2013.
The dollar continued its fall for the second week, where traders held off forecasts of a rise in US interest rates, after results showing weaker global economic growth. Thus, the euro gained 1.30% against the dollar, ending the week at €/$ 1.2835.
Gold held its first two-week increase since July due to speculation signs of a global slowdown headed by Europe. This drove a decline in the price of gold from $1,223.75/ounce last Thursday, to $1,238.70/ounce this week.
By Friday October the 17th, 2014, 12:30 pm Beirut time, the dollar-pegged LP depreciated against the euro going from €/LP 1,910.00, the prior week, to €/LP 1,934.88. The Nominal effective exchange Rate (NEER) fell marginally by 0.08%, weekly, to 138.62 points, with a 7.41% gain since year-start.