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 stood at $37.97B by end-April 2019.
The dollarization ratio of private sector deposits remained stable at 70.62% in Dec. 2018 to 70.60% in March 2019.
The Euro weakened against the dollar-pegged LP, ending the week at €/LBP 1,681.77, compared to last week’s €/LBP 1,684.24. In its turn, the Nominal Effective Exchange Rate (NEER) of the LBP fell by 0.18% to 119.43 points by the week ending May 31.
International Forex Market
In the week ending May 31 2019, the euro fell behind as the European Central Bank (ECB) warned that trade tensions and weaker-than-expected economic growth could cause further sell-offs in European markets. As such, the Euro fell by a weekly 0.15% against the US Dollar, as the currency pair went from last week’s €/USD 1.1172 to €/USD 1.1156.
Accordingly, gold prices rose over the week to $1,297.71/ounce by May 31, compared to last week’s $1,283.25/ounce.