Euro Depreciated Amid Financial Concerns

Lebanese Forex Market

Demand for the dollar on the Lebanese forex market remained constant over the past 3 weeks , where the value of the Lebanese pound against the dollar stood at $/LP 1,514-1,514.50 with a mid-price of $/LP 1,514.25.

Foreign assets (excluding gold) of the Central Bank increased 9.81% since the beginning of the year to $40.73B by August 2016. The dollarization ratio of private sector deposits fell from 64.88% in December 2015 to 64.87% in July 2016.

By Friday the 30th of September 2016, the euro slightly depreciated against the dollar-pegged LP over the last week, falling from €/LBP 1,689.00 to €/LBP 1,685.84. As for the Nominal Effective Exchange Rate (NEER) of the LBP, it decreased by 0.04% to reach 165.68 points.

International Forex Market:

The euro weakened against the dollar this week. Traders are seeking safe haven assets amid concerns over the health of the financial industry, in the Eurozone. Hence, the euro depreciated against the dollar with the euro/dollar exchange rate dropping from €/$1.1204 to €/$1.1183, this week.

Commodities:

Over the past week, gold prices decreased from $1,339.21/ounce to $1,327.21/ounce this week.

30/09/201623/09/2016%ChangeYTD
Euro / LP           1,685.841689.000-0.19%
Euro / Dollar1.11831.1204-0.19%
NEER Index**165.68165.74-0.04%-1.61%

 

Leave a Reply

Your email address will not be published. Required fields are marked *