Lebanese Forex Market
The Lebanese Pound (LP) steadied during the past 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 $36.59B by end-May 2019.
The dollarization ratio of private sector deposits increased slightly from 70.62% in Dec. 2018 to 70.93% in April 2019.
The Euro strengthened against the dollar-pegged LBP, going from €/LBP 1,703.85 last week to €/LBP 1,711.83. In its turn, the Nominal Effective Exchange Rate (NEER) of the LBP retreated by 0.37% to 117.83 points by the week ending June 28th.
International Forex Market
In the week ending June 28th 2019, the Euro/USD currency pair went from last week’s €/USD 1.1302 to €/USD 1.1355 this week. In fact, investors’ anticipation over whether the G20 meeting scheduled for this weekend will carry a resolution for the US-China trade tensions capped the strength of the US dollar.Moreover, the rising US-Iran tensions further weakened the dollar against the Euro.
Accordingly, gold prices climbed from $1,395.77/ounce last week to $1,411.19/ounce in the week ending June 28th 2019.