Stronger Demand for the Lebanese Pound on the Forex Market

Euro / LP1702.271679.661.35% 
Euro / Dollar1.12921.11421.35% 
NEER Index**167.07167.11-0.02%13.41%

Lebanese Forex Market:

Demand for the Lebanese Pound in the Lebanese Forex market strengthened during the week with the exchange rate moving within the peg range from $/LP 1,508–1,512 with a mid-price of $/LP 1,510 to $/LP 1,507–1,511 with a mid-price of $/LP 1,509. Foreign assets (excluding gold) at the Central Bank dropped by a monthly 0.57% to reach $38.59B at the end of August. As for the dollarization rate of private sector deposits, it slid from 65.71% in December 2014 to 65.08% by June.

By Friday 11th of September, 2015, 11:30 pm Beirut time, the dollar-pegged LP depreciated against the euro going from €/LP 1,679.66 to €/LP 1,702.27. The Nominal effective exchange Rate (NEER) shed a weekly 0.02% to 167.07 points, bringing its year-to-date gains to 13.41%.

International Forex Market:

The euro appreciated by 1.35% against the dollar to €/$ 1.1292 after second-quarter economic growth in the Eurozone was revised higher from 0.3% quarter-on-quarter and 1.2% year-on-year to 0.4% quarter-on-quarter and 1.5% year-on-year. The euro also got a boost from July’s positive German exports data.  As for the dollar, it may regain traction once the Federal Reserve announces a hike in interest rates on September 17th.


Amidst increasing speculation about a future upturn in US interest rates, which would imply a stronger dollar, the price of gold declined by a weekly 1.59% to reach $1,106/once at 12:30 pm Beirut time.

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