Lebanese Forex Market:
Demand for the Dollar in the Lebanese Forex Market increased over the past week as the value of the Lebanese Pound went up from a quote of $/LP 1,510.5-1,514.5 with a mid-price of $/LP 1,512.5 to a quote of $/LP 1,513-1,514 with a mid-price of $/LP 1,513.5.
Foreign assets (excluding gold) of the Central Bank fell by a monthly 1.91% to $37.09B at the end of December 2015. As for the dollarization rate of private sector deposits, it slid from 65.71% in December 2014 to 64.57% by November 2015.
By Friday 29th of January, 2016, 12:30 pm Beirut time, the euro appreciated against the dollar-pegged LP as the exchange rate added 0.62%, over the last week, from €/LP 1,633.38 to €/LP 1,643.48. As for the Nominal effective exchange Rate (NEER), it decreased by a weekly 0.21% to 169.14 points.
International Forex Market:
The Euro rose 0.62% against the dollar to a quote of €/$1.0902, as investors believed that the US economic growth would not accelerate as expected. The Federal Reserve’s decision to keep interest rates unchanged strengthened this belief.
The US and Chinese economic slowdowns pushed up demand for the safe haven. The price of gold increased from last week’s $1,096.40/ounce to $1,116.37/ounce this week.