Lebanese Forex Market
The Lebanese Pound (LP) steadied this week within the range of $/LP 1,514 – 1,514.5 against the dollar, with a mid-price of $/LP 1,514.25.
The peg continues to be supported by the Central Bank’s solid foreign assets, which reached $38.56B by the end of March 2019.
The dollarization ratio of private sector deposits remained stable at 70.62% in Dec. 2018 to 70.60% in February 2019.
The Euro appreciated against the dollar-pegged LP, ending the week at €/LBP 1,705.13, compared to last week’s €/LBP 1,703.92. In its turn, the Nominal Effective Exchange Rate (NEER) of the LBP advanced by 0.33% to 118.52 points by the week ending April 18th.
International Forex Market
The Euro appreciated by a marginal 0.07% against the US dollar in the week ending Apr. 18th, with the currency pair going from last week’s €/USD 1.130 to €/USD 1.131. The euro’s marginal appreciation can be linked to the weakened US dollar slipped on Monday, as President Donald Trump criticized the Federal Reserve’s monetary policy. In details, the President stated that the central bank’s monetary policy is hurting the US stock market.
Accordingly, gold prices fell over the week to $1,275.46/ounce by April 18th, compared to last week’s $1,290.51/ounce.