|Euro / LP||1921.76||1940.91||-0.99%|
|Euro / Dollar||1.2748||1.2875||-0.99%|
Demand for the dollar steadied over the prior week as reflected by the Lebanese pound’s peg against the dollar that remained at $/LP 1,510-1,514 with a mid-price of $/LP 1,512, since last week. Foreign assets (excluding gold) at the Central Bank rose by a monthly 0.76% from $37.77B by July to $38.05B by end-August. Meanwhile, the dollarization rate of private sector deposits stood at 66.08% in July compared to 66.13% in December 2013.
As the Federal Reserve decides on a proper timing for a hike in interest rates, the dollar remained near a four-year high against a basket of currencies including the euro. The euro lost 0.99% against the dollar, ending the week at €/$ 1.2748, as the European Central Bank pursues its stimulus plans for a struggling economy.
The strong dollar subdued the demand for gold which slid from last Thursday’s $1,225.19/ounce to $1,222.44/ounce this week.
By Friday September 26th, 2014, 12:30 pm Beirut time, the dollar-pegged LP appreciated against the euro going from €/LP 1,940.91 to €/LP 1,921.76. The Nominal effective exchange Rate (NEER) added 1.00% to 137.89 points, with a 6.84% gain since year-start.