Lebanese Forex Market:
Demand for the Dollar in the Lebanese Forex Market remained stable over the past week since the value of the Lebanese Pound was unchanged against the dollar with a quote of $/LP 1,510.5-1,514.5 and a mid-price of $/LP 1,512.5.
Foreign assets (excluding gold) of the Central Bank fell by a monthly 1.91% to $37.09B at the end of December 2015. As for the dollarization rate of private sector deposits, it slid from 65.71% in December 2014 to 64.57% by November this year.
By Friday 15th of January, 2016, 15:14 pm Beirut time, the dollar-pegged LP depreciated against the euro as the exchange rate increased by 0.29%, over the last week, from €/LP 1,639.26 to €/LP 1,644.08. As for the Nominal effective exchange Rate (NEER), it increased by a weekly 0.09% to 169.28 points.
International Forex Market:
The euro was perceived as a safe-haven currency and gained a weekly 0.29% against the dollar and ended the week at €/$ 1.0906. The euro was more appealing to investors this week on account of lower oil prices and weaker Chinese shares. OPEC announced that its oil basket fell to $25 on Thursday. Once Iranian sanctions are lifted and Iranian oil enters the market, the higher supply will likely push the oil price further down.
In spite of concerns over the health of the global economy, the price of gold still managed to edge down from last week’s $1,100.40/ounce to $1,088.96/ounce this week