Stronger Dollar as a Result of New Fed Chief Nomination

Lebanese Forex Market 

Demand for the Lebanese Pound steadied over the past week on the Lebanese forex market with the value of the Lebanese Pound trading within the range of $/LP 1,513.75-1,514.25 with a mid-price of $/LP 1,514.

Foreign assets (excluding gold) recorded a year to date (y-t-d) upturn of 3.68% to $44.03B by September 2017.

The dollarization ratio of private sector deposits rose from 65.82% in December 2016 to 66.92% by the end of September 2017.

By Friday October 20th, the euro depreciated against the dollar-pegged LP going from €/LBP 1,783.52 on the 13th of October to €/LBP 1,776.49, this week.

As for the Nominal Effective Exchange Rate (NEER) of the LBP, it rose by 0.25% over the past week to stand at 111.91 points.

International Forex Market:

The dollar strengthened during the week on speculation that U.S. President Trump was leaning towards nominating a Federal Reserve head, John Taylor, who would be more inclined to raise interest rates at a faster pace. The Euro/Dollar rate stood at 1.1784 this week compared to 1.1831  last week.



On the back of a stronger dollar, gold prices dropped from $1,282.15/ounce last week to $1,267.82/ounce this week.


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