Lebanese Forex Market:
Demand for the Lebanese Pound steadied this week as the exchange rate remained in the same range of $/LP 1,510.5-1,514.5 with a mid-price of $/LP 1,512.5.
Foreign assets (excluding gold) of the Central Bank rose by a monthly 0.20% to $37.81B at the end of November 2015. As for the dollarization rate of private sector deposits, it slid from 65.71% in December 2014 to 64.62% by September this year.
By Friday 4th of December, 2015, 15:30 pm Beirut time, the dollar-pegged LP depreciated against the euro as the exchange rate rose by a weekly 2.91% from €/LP 1,595.54 to €/LP 1,641.97 . As for the Nominal effective exchange Rate (NEER), it increased by a weekly 0.55% and by 15.59% since year-start to 170.29 points.
International Forex Market:
After a long streak of losses, the euro gained some ground against the dollar and added a weekly 2.91% to €/$ 1.0892. On Thursday, the euro registered its highest gain against the dollar since 2009 after the European Central Bank’s announced stimulus measures were less pronounced than market players had anticipated. The bond buying program will continue until at least March 2017 at the same pace of €60B/month.
The price of gold rose from last week’s $1,057.40/ounce to $1,072.66/ounce. However, the metal’s price remains subdued as investors incorporate the Fed’s December rate hike in their positions.