Euro Depreciated this Week as Speculators Waited for BREXIT Vote

Demand for the Dollar in the Lebanese Forex Market remained unchanged over the past week as the value of the dollar steadied at $/LP 1,513.75-1,514.25 with a mid-price of $/LP 1,514.

Foreign assets (excluding gold) of the Central Bank increased 0.59% since the beginning of the year to $37.31B by May 2016. The dollarization ratio of private sector deposits fell from 64.88% in December 2015 to 64.73% in April 2016.

By Friday 17th of June, 2016, 3:00 pm Beirut time, the euro depreciated against the dollar-pegged LP as the exchange rate decreased by 0.43%, over the last week, dropping from €/LP 1703.78to €/LP 1,696.39. As for the Nominal Effective Exchange Rate (NEER), it gained a weekly 0.13% to 166.40 points.  

Seeking security before the U.K. votes on whether or not to leave the European Union, currency speculators favored buying the dollar and yen over the euro. This resulted in the decline of the Euro against the dollar from €/$1.1302 last week to €/$1.1253 this week.

As for gold, its price increased from $1,269.86/ounce at last Friday to $1,287.90/ounce this week. 

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