Lebanese Forex Market:
Demand for the Dollar in the Lebanese Forex Market remained unchanged over the past week as the value of the Lebanese Pound steadied at $/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. The dollarization ratio of private sector deposits fell from 65.71% in 2014 to 64.88% in 2015.
By Friday 19th of February, 2016, 12:30 am Beirut time, the euro depreciated against the dollar-pegged LP as the exchange rate dropped by 1.76%, over the last week, from €/LP 1,702.87 to €/LP 1,672.87 . As for the Nominal effective Exchange Rate (NEER), it appreciated by a weekly 0.47% to 168.34 points.
International Forex Market:
The Euro dropped by a weekly 1.76% against the dollar as positive data released in the U.S over the week, including consumer report and Industrial Production Data in addition to the FED’s minutes of meeting, has reinforced the dollar. Also, the euro is downside facing pressure on hint of further interest rates cutting in the Eurozone.
Commodities:
After a positive performance for the dollar over the week, the gold prices declined from last week’s $1,240.36/ounce to $1,227.36/ounce this week.