Stronger Euro as ECB Cuts Inflation Forecast

Lebanese Forex Market

Demand for the dollar remained stable on the Lebanese Forex market with the value of the Lebanese Pound trading within the range of $/LP 1,514 – 1,514.5 with a mid-price of $/LP 1,514.25 since last week.

Foreign assets (excluding gold) at the Central Bank reached $38.78B in May 2017 compared to $40.71B in December 2016.

The dollarization ratio of private sector deposits rose from 65.82% in December 2016 to 66.38% by the end of April 2017.

By Friday June 9, the euro depreciated against the dollar-pegged LP going from €/LBP 1,691.26 on June 2nd to €/LBP 1,684.93, this week.

As for the Nominal Effective Exchange Rate (NEER) of the LBP, it rose by 0.07% over the past week to stand at 114.28 points.

International Forex Market:

The dollar strengthened against the euro this week rising by a 0.37% to €/$ 1.1177. The euro weakened broadly after the European Central Bank on Thursday cut its forecast for inflation this year to 1.5%, down from 1.7% in March.

Commodities:

Gold prices rose this week from $1,262.83/ounce to $1,274.22/ounce.

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