Lebanese Forex Market:
Demand for the Dollar on the Lebanese forex market slightly slid over the past week as the value of the Lebanese pound against the dollar fell from a mid-price of $/LP 1,514 within the range of $/LP 1,513.75-1,514.25 to a mid-price of $/LP 1,513.5 within the range of $/LP 1,513 -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 29th of July, 2016, 2:00 pm Beirut time, the euro appreciated against the dollar-pegged LP as the exchange rate rose by 0.68%, over the last week, going from €/LP 1,662.17 to €/LP 1,673.48. As for the Nominal Effective Exchange Rate (NEER) it fell by 0.18% to reach 167.07 points.
International Forex Market:
It is no surprise to see the dollar lose ground against the euro this week. In fact, the euro dollar exchange rate rose from €/$1.1026 to €/$1.1101. The Federal Reserve kept interest rates unchanged on Thursday, noting that although the US economy has improved, fears from the Brexit repercussions are still present.
Over the week, gold saw its price rise from $1,325.38/ounce to $1,335.21/ounce this Friday, as it is negatively correlated to the value of the US dollar.