Lebanese Forex Market
Demand for the Lebanese Pound stabilized over the past week 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 last week.
Foreign assets (excluding gold) at the Central Bank reached $38.78B in May 2017 compared to $40.71B in December 2016.
The dollarization ratio of private sector deposits rose from 65.82% in December 2016 to 66.38% by the end of April 2017.
By Friday June 23rd, the euro depreciated against the dollar-pegged LP going from €/LBP 1,684.48 on June 16th to €/LBP 1,684.03, this week.
As for the Nominal Effective Exchange Rate (NEER) of the LBP, it rose by 0.27% over the past week to stand at 114.66 points.
International Forex Market:
The euro depreciated against the dollar this week falling by 0.03% over the past week to €/$ 1.1171. Nonetheless, last week’s strengthening dollar eased this week as investors’ evaluation of the FED’s hawkish tone was ongoing.
The flattening of US treasury yields following the investors’criticism on the FED’s increase of interest rates last week was the primary driver of higher Gold prices, which rose from $1,255.16/ounce last week to $1,256.65/ounce.