After Brexit Panic, Euro Gains Some Respite

Lebanese Forex Market:

Demand for the Dollar in the Lebanese Forex Market steadied over the past two weeks as the value of the Lebanese pound against the dollar  stabilized at mid-price of $/LP 1,514 within the range of $/LP 1,513.75-1,514.25.

Foreign assets (excluding gold) of the Central Bank increased 2.20% since the beginning of the year to $36.28B by June 2016. The dollarization ratio of private sector deposits fell from 64.88% in December 2015 to 64.73% in May 2016.

By Friday 15th of July, 2016, 2:00 pm Beirut time, the euro appreciated against the dollar-pegged LP as the exchange rate increased by 0.31%, over the last week, rising from €/LP 1,674.08 to €/LP 1,679.20. As for the Nominal Effective Exchange Rate (NEER), it also decreased by a weekly 0.47% to 166.84 points.  

International Forex Market:

After the UK’s decision to leave the European Union sparked panic across markets, the euro gained a breather over the past two weeks. As for the dollar, it did not register an increase over the period perhaps as markets are underestimating the probability of a rate hike by the Federal Reserve this year. The euro’s exchange rate against the dollar rose by 0.31% these past two weeks to €/$ 1.1139.


As for gold and over the past two weeks, it saw its price increase from $1,333.99/ounce to $1,335.56/ounce this Friday.


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